Russian stocks fall as ruble rise offsets oil price growth

MOSCOW, May 22 (PRIME) -- The Russian stock market decreased on Monday as the rate of the national currency growth seemed too strong to investors, as compared with the oil price one, analysts said.

The MICEX fell 0.61% to 1,950.51 and the RTS decreased 0.38% to 1,083.58.

“The ruble, which was strengthening on the back of a growth of oil quotations, was exerting the main pressure on the market,” Otkritie Broker analyst Andrei Kochetkov said.

Andrei Dirgin, director of Alfa Forex’s analytical department, said that oil prices were increasing as investors were waiting for an OPEC summit on Thursday, but the price rise was quite indecisive, stopping at about U.S. $54. 

Kochetkov said that the shares of electric power producers and exporters were doing worse than the rest of sectors on Monday because of the ruble dynamics.

Lukoil was sagging because a planned prolongation of the OPEC plus non-member oil output reduction deal will affect its projects in both Russia and Iraq.

The companies which are benefiting from a strong ruble in general outperformed the market on Monday, he said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.50	168.03	5.003
Gazprom	-1.34	122.52	4.833
Lukoil	-1.37	2811	1.679
ALROSA	-0.97	89.19	1.158
Norilsk Nickel	-0.36	8275	0.934

(57.1602 rubles – U.S. $1)

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