Russian stocks fall as oil price dips, ahead of Yellen statement

MOSCOW, Mar 29 (PRIME) – A lower oil price and uncertainty over the mood of a statement to be made by the U.S. Federal Reserve System’s (Fed) Chairwoman Janet Yellen left no other choice for Russian stocks than to fall on Tuesday, analysts said.

The MICEX fell 0.22% to 1,845.20 and the RTS decreased 0.97% to 843.42.

“On Tuesday, the second half of trading at the Russian stock market was negative. The fall of the energy market once again dragged the Brent oil price below a U.S. $39.5 per barrel mark, and the bears were able to keep their initiative,” Bogdan Zvarich, an analyst at investment company Finam, said.

The Brent oil price lost 3.575% to $38.88 per barrel as of 6.13 p.m. Moscow time, according to the ICE exchange. No help and no reasons for purchases also came from unfavorable external background.

“The external background for the Russian market was negative today. In China, shares of developers fell for a second day in a row due to concerns about new measures aimed at restraining price growth on the real estate market,” Vasily Tanurkov, deputy head of the stock market analysis department at investment company Veles Capital, said.

Investors were also waiting for Yellen’s comment for tips whether the Fed would raise its key rate in April, which may trigger sales, Tanurkov said.

“Domestic indices will price in the Fed chairwoman’s announcement tomorrow…If Yellen is soft just like at the Fed’s previous meeting, risky assets, including the MICEX and the RTS, will receive support. Even though it will be of little help due to low oil prices,” Igor Kovalyov, an analyst at InstaForex, said.

Preferred shares of oil company Surgutneftegas grew 0.50% to 44.505 rubles as they traditionally act as a safe haven, when the external background becomes unfavorable, Vitaly Manzhos, senior analyst at Bank Obrazovanie, said.

Shares of Russia’s second biggest bank VTB outperformed the market and rose 0.63% to 0.073 rubles due to the bank’s strong financial performance, Manzhos said. VTB swung to a 2.1 billion ruble net profit in January–February against a 13.5 billion ruble net loss in the same period in 2015, as calculated under International Financial Reporting Standards (IFRS).

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.99	107.50	9.252
Gazprom	-0.28	144.70	3.545
Lukoil	+1.73	2614.50	2.731
Norilsk Nickel	-0.67	8935.00	2.393
Rosneft	-2.02	296.40	2.200

(67.7807 rubles – U.S. $1)

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