Russian stocks fall on coronavirus woes, oil price contraction

MOSCOW, Oct 26 (PRIME) – The Russian stocks contracted on Monday in line with the foreign bourses where a selloff took place on fears of a forthcoming second wave of the coronavirus pandemic, while contraction of oil prices also contributed to the negative environment, analysts said.

The MOEX Russia Index fell 1.10% to 2,785.59 and the RTS decreased 1.01% to 1,152.33.

“The external background for the Russian market was negative, which led to contraction of the indices,” Otkritie Broker’s senior analyst Andrei Kochetkov said.

The European bourses fell after France registered a record of coronavirus cases, Spain introduced curfews, and Italy closed fitness centers and obliged cafes and restaurants to close early. The technology sector experienced the deepest contraction after German software developer SAP AG recalled its mid-term profit forecast and said that recovery from the coronavirus may take much more time, Kochetkov said.

The futures for the U.S. stock indices fell on expectations that strict restrictions will return and feared that the situation with SAP AG may become contagious for the entire sector. The Russian market reacted to the Western bourses, Kochetkov said.

Yelena Kozhukhova also said that new coronavirus developments triggered sales on the Western bourses and the Russian market. Falling oil prices also added fuel to the fire.

“Contraction of the closest futures for the Brent and the WTI oil price worsened to 3.5% this evening. Sales happened on the background of strengthening of the U.S. dollar, prospects for a higher oil production in Libya, possible production growth in the U.S., and due to the risks of low demand because of new restrictions in the global economy,” Kozhukhova said.

Power holding Inter RAO fell by 1.23% to 5.2505 rubles due to weak operating and financial results for the quarter, as its power output shrank by 20.3% on the year while production of thermal power went down 7.7%, Kozhukhova said.

Global depositary receipts of X5 Retail Group fell 4.06% to 2,873 rubles as investors took profit despite robust financial performance in July–September, she said.

Below are the MOEX Russia Index’ five most active stocks on Monday:

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.26	211.80	11.192
Gazprom	-1.73	162.11	7.693
Norilsk Nickel	-1.64	19512.00	5.116
Lukoil	-2.30	4225.50	3.221
Yandex	-1.45	4457.80	2.099

(76.4667 rubles – U.S. $1)

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