Russian stocks fall on Chinese statistics, negative environment

MOSCOW, Feb 6 (PRIME) -- Russian stocks contracted on Monday after China published disappointing statistics and on an unfavorable foreign background, analysts said.

The MICEX fell 0.72% to 2,210.51 and the RTS decreased 1.00% to 1,178.52.

“The impact from the background was moderately negative. The pan-European Stoxx 600 and the U.S. indicator S&P 500…were in the red zone. It is apparent that some pressure on prices of ruble-denominated shares was exerted by weak statistics from Chine. Caixin Purchasing Managers’ Index in China’s services sector eased on the month to 53.1 points in January,” Timur Nigmatullin, an analyst at investment company Finam, said.

The S&P 500 index lost 0.09% to 2,295.46 points as of 6.23 p.m. Moscow time, and the Stoxx 600 fell 0.51% to 362.20 as of 6.10 p.m.

“The Russian benchmark receives no drivers for growth. The background is still moderately negative. Futures for U.S., European and Asian indices are falling. The market connects the main risks with the policy of Donald Trump…Plus we also have a rather tough position of the central bank…Oil prices also don’t add any optimism,” Irina Rogova, an analyst at Forex Club group of companies, said.

The Brent oil price went down 0.495% to U.S. $56.53 per barrel as of 6.16 p.m., according to the ICE exchange.

Anton Kochetkov, an analyst at Otkritie Broker, said that the major trading idea of the day was continuous strengthening of the ruble. “The higher the rate the more the pressure on the ruble-denominated index,” he said, adding that the stock market lacked ideas during the day as investors were mostly focused on the currency market.

Local blue chips fell in line with the market, while shares of steelmaker Severstal rose 2.50% to 955.90 rubles in correction after last week’s sales, Kochetkov said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.54	172.87	5.870
Gazprom	-0.57	148.50	3.275
Lukoil	-0.96	3338.00	2.351
Norilsk Nickel	-1.66	9922.00	1.744
RusHydro	+1.12	1.10	1.345

(59.3137 rubles – U.S. $1)

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