Russian stocks fall on absence of positive drivers, falling oil

MOSCOW, Oct 16 (PRIME) -- Russian stocks continued their downward movement on Thursday as the foreign background provided no positive drivers, while falling oil prices and negative domestic factors weighed upon the stocks, analysts said.

The MICEX fell 1.22% to 1,360.33 and the RTS decreased 2.04% to 1,045.23.

“No factors to support buying have appeared, while oil – a major landmark for investors – continued trading at around 2010 levels, which presses the securities,” Ivan Fomenko, head of Absolut Bank’s trust management department, said.

As of 6.31 p.m. Moscow time, Brent oil prices fell U.S. 0.29%% to $83.54 per barrel, and considering that the Russia’s Urals oil price is based upon the falling Brent oil, this decrease will have the most significant consequences for both Russian economy and the financial sector, Anton Fomin, analyst at Instaforex, said.

Even the positive mood coming from the possibility of E.U. sanctions being revised after President Vladimir Putin relocated Russian troops from the border with Ukraine changed to negative expectations after Germany’s Chancellor Angela Merkel said that Russia must make decisive contribution to de-escalation and the situation in Ukraine remains extremely difficult despite the cease-fire.

However, a meeting between Putin and his Ukrainian counterpart Pyotr Poroshenko in Milan on Friday is still of great interest, especially prior to the next trilateral gas talks on October 21, Sofya Kirsanova, analyst at Raiffeisen Capital, said.

A significant driver of sales on the Russian market was also a statement of management of gas giant Gazprom that the government may allow the company not to pay dividends for 2014. The statement’s official confirmation can lead to sales not only of Gazprom, but of other state companies, as dividend payments are one of the attractive factors for Russian assets, Kirsanova said.

Developer PIK Group was among the gain leaders, rising 3.61% to 123.30 rubles, as the company approved paying 4.16 rubles per share, or 2.75 billion rubles, in dividends for previous years, while the register for dividends closes on November 5.

Gazprom Neft, an oil branch of Gazprom, was one of the outsiders losing 3.83% to 143.10 rubles, as the company’s register for dividends closes on Friday.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-2.68	71.12	14.163
Gazprom	-1.55	132.41	6.426
Lukoil	-1.26	1955.00	2.967
Norilsk Nickel	-0.57	6990.00	2.647
Magnit	-0.67	10150.00	1.952

(40.9416 rubles – U.S. $1)

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