Russian stocks fall in thin trade on uncertainty about US rate move

MOSCOW, Sep 17 (PRIME) -- Russian stocks decreased on Thursday in thin trade in anticipation of the U.S. Federal Reserve’s (Fed) decision on a key rate increase, as well as amid sliding oil prices and the ruble weakening against the dollar, analysts said.

The MICEX fell 0.15% to 1,729.20 and the RTS decreased 1.70% to 823.13.

“Investors are worried that U.S rates may be increased, and if today in the evening the Fed decides to take a step to normalize the monetary policy, the global market may respond with a full-fledged fall,” Igor Kovalyov, an analyst at InstaForex, said.

If U.S. interest rates are increased, the dollar will strengthen and prices for raw materials, denominated in dollars, will fall automatically, Timur Nigmatullin, an analyst at Finam said. The Fed’s decision will be announce at 9.00 p.m. Moscow time.

The external background for the market was negative as global stocks and commodity markets were put under pressure by uncertainty about the Fed’s decision on rates, according to Vasily Tanurkov, an analyst at Veles Capital.

The dollar-denominated RTS was under additional pressure on the back of a weak ruble, which depreciated to above 66 against the dollar by the closing bell, Nigmatullin said.

Metals exporters attracted investors amid the ruble weakening, according to Vitaly Manzhos, a senior analyst at Bank Obrazovanie. Magnitogorsk Iron and Steel Works (MMK) gained 2.65%, Severstal rose 1.44%, and Norilsk Nickel and Novolipetsk Steel (NLMK) gained 0.91%.

Shares of the Moscow Exchange jumped 3.24% as stocks have been very volatile recently and the bourse’s commission income may rise on the back of this middle-term rise of volatility, Manzhos said.

Russian oil and gas majors decreased following a Brent price fall to about U.S. $49 per barrel by the end of the trading session, Manzhos said. Gazprom Neft fell 2.36% and Surgutneftegas lost 1.83%.

On Friday, Russian stocks’ dynamics will heavily depend on the Fed’s decision, Tanurkov said, adding that the U.S. key rate is unlikely to be increased because macroeconomic indicators show that U.S. economic growth is slowing down and global markets are volatile.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.57	76.49	7.203
Lukoil	-1.45	2439.00	2.065
Gazprom	-0.08	142.80	2.041
Rosneft	+0.54	252.85	1.444
Norilsk Nickel	+0.78	11206.00	1.130

(65.9273 rubles – U.S. $1)

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