Russian stocks fall as oil prices decline, ECB keeps rates flat

MOSCOW, Oct 20 (PRIME) -- Russian stocks decreased on Thursday amid oil prices falling by around 2%, fruitless talks in the Normandy format and as global investors were disappointed by the European Central Bank’s (ECB) decision not to change the E.U. monetary policy, analysts said.

The MICEX fell 0.53% to 1,957.09 and the RTS decreased 0.78% to 987.48.

“A noticeable intraday decline in oil futures has become a stimulus for moderate sales on the local market. However, oil contracts are just correcting down after yesterday’s sharp jump,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said, adding that the recent oil growth was caused by unexpected fall in the U.S. oil reserves.

Fruitless talks in the Normandy format on the Ukrainian and Syrian issues were also a negative factor for the Russian market, the analyst said.

Oil company Bashneft’s preferred shares rose 4.86% after Rustem Khamitov, head of the republic of Bashkortostan, said that next dividends on the company’s preferred shares will remain at least at the 2015 level. Common shares fell 3.59% on fears that oil major Rosneft, which recently purchased the government’s 50.08% stake in Bashneft, may not make a mandatory buyout offer to the minority shareholders, Manzhos said.

Coal producer Raspadskaya was among outsiders losing 1.56% after reporting that its coal concentrate sales fell 10% on the year to 4.556 million tonnes in January–September.

Fertilizer producer Acron dropped 4.31% despite its mineral fertilizer output growing 18.9% on the year to 3.826 million tonnes in January–September. Investors are probably concerned with a potential impact of the strong ruble on the company’s business profitability, Raiffeisen Capital analyst Sofya Kirsanova said.

Uncut diamond mining giant ALROSA decreased 0.5% on reports that its diamond sales fell 6% on the year to 27.9 million carats in January–September.

Hydropower giant RusHydro gained 1.32% after saying that its power output grew 12.6% on the year to 94.117 billion kilowatt-hours (kWh) in January–September.

Retailer Lenta decreased 1.41% despite reporting that its revenue increased 21.3% on the year to 215.506 billion rubles in January–September.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.23	148.26	5.082
Gazprom	-0.57	134.72	1.674
Lukoil	-0.34	3037.50	1.303
Magnit	+0.36	10605.00	1.201
Surgutneftegas	-1.28	27.395	0.854

(62.5841 rubles – U.S. $1)

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