Russian stocks fall following oil, ruble plunge

MOSCOW, Dec 14 (PRIME) -- Russian stocks contracted on Monday following a plunge in oil prices and the ruble, while investor mood was also spoiled by a possible escalation of Russia–Turkey relations, analysts said.

The MICEX fell 0.67% to 1,708.70 and the RTS decreased 2.07% to 761.08.

“New long-term anti-records set by the oil futures have left the local market no choice but a significant fall. As usual, the main impact from the oil market was taken by the ruble,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

The Brent oil futures plunged 2.57% to U.S. $36.98 per barrel as of 6.13 p.m. Moscow time, according to the ICE exchange.

In addition to the falling oil price, the Russian market reacted to a December 13 near collision of a Turkish ship with a Russian patrol vessel, which traders perceived as escalating confrontation, Manzhos said.

“Oil is still the key parameter for the Russian stock market dynamics. We see no current drivers that are able to turn around the falling trend,” Mikhail Abramov, an analyst at investment company Veles Capital, said.

The main event of the current week will be the U.S. Federal Reserve System’s meeting, where the Fed is very likely to increase rates. But it is may not hurt the oil prices, as the increase is expected and has already been priced in, Abramov said.

The oil price fall exerted pressure on energy stocks with gas giant Gazprom and oil major Lukoil losing 1.65% and 0.70% to 131.59 and 2,432.80 rubles respectively. The weak ruble also provided no support for metals companies, and Magnitogorsk Iron and Steel Works (MMK) and steelmaker Novolipetsk Steel (NLMK) fell 2.94% and 2.76% to 18.13 and 63.10 rubles, respectively.

Only a handful of exporters benefited from the ruble’s decrease – silver and gold producer Polymetal, uncut diamond mining giant ALROSA, and fertilizer producer Uralkali grew 5.40%, 5.50%, and 2.67% to 574, 53.28 and 186.80 rubles respectively.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.46	97.70	9.921
Gazprom	-1.65	131.59	4.521
Surgutneftegas prefs	-0.72	41.85	2.394
Lukoil	-0.70	2432.80	2.318
Norilsk Nickel	-1.35	8780.00	1.853

(69.1755 rubles – U.S. $1)

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