Russian stocks fall as oil price contracts

MOSCOW, Feb 2 (PRIME) -- Russian stocks fell on Tuesday as the oil price and European stocks contracted and international rating agency Fitch cut 2016 gross domestic product forecast to a 1% fall from a 0.5% growth, analysts said.

The MICEX fell 0.84% to 1,758.26 and the RTS decreased 4.00% to 701.21.

“Yet another fall of the oil prices prompted a decrease of the ruble. The MICEX index fell less significantly only thanks to the ruble-denominated shares, as they partially compensate the national currency’s devaluation,” Andrei Kochetkov, an analyst at Otkritie Broker, said.

Europe’s pessimism and oil price plunge prompted sales at the Russian market. “The MICEX’ losses look more moderate due to investor interest to shares of metals companies. But the benchmark was unable to stay in the green also due to Fitch’s decrease of the Russian economy’s estimation to a 1% fall from a 0.5% growth in 2015,” Igor Kovalyov, an analyst at InstaForex, said.

The ruble plunge was a positive factor for export-oriented metals companies, and shares of metals giant Norilsk Nickel, steelmaker Novolipetsk Steel (NLMK), silver and gold producer Polymetal International and Russian Depositary Receipts of aluminum giant UC RUSAL grew 2.60%, 2.76%, 3.16%, and 3.30%, respectively.

Diamond mining giant ALROSA grew 4.53% supported by expectations of privatization.

But the weak ruble also prompted sales in shares of banks. Common and preferred shares of biggest bank Sberbank and common shares of Russia’s second largest bank VTB Bank fell 2.18%, 2.22% and 3.76%, respectively.

Below are the MICEX’ five most active stocks on Tuesday:

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-2.18	94.40	12.264
Gazprom	-1.05	132.50	4.838
Lukoil	-2.20	2491.00	3.038
Norilsk Nickel	+2.60	8924.00	2.546
Magnit	-1.06	11150.00	1.794

(76.3264 rubles – U.S. $1)

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