Russian stocks fall on correction amid stronger ruble, high oil

MOSCOW, Sep 28 (PRIME) -- Russian stocks decreased on correction on Thursday after a recent hike, with the MICEX decline propelled by the ruble’s appreciation against the dollar, analysts said.

The MICEX fell 0.46% to 2,071.64 and the RTS decreased 0.12% to 1,125.56.

“On Thursday, the Russian stock market switched to correction after quite an active hike earlier…in the second half of the day, the indices managed to win back losses thanks to the oil price rebound,” InstaForex analyst Igor Kovalyov said.

Forex Club analyst Irina Rogova said that trading on the MICEX was mixed. “Oil prices resumed growth today, which was a local support factor for the Russian benchmark. However, while it was approaching the recent local maximum of 2,086, sellers became more active, which eventually led to a decrease in its quotations.”

The Brent oil price returned to the level above U.S. $58 per barrel. If oil prices continue to grow, the Russian ruble can also strengthen, which will have a negative impact on the MICEX, Rogova said.

Hydropower giant RusHydro was among growth leaders adding 3.76% due to an increased number of its shares in the MSCI Russia index resulting from a share sale to VTB Bank, Kovalyov said.

The country’s second biggest lender VTB rose 0.45% on reports that its net profit more than doubled to 68.7 billion rubles in January–August, as calculated under International Financial Reporting Standards (IFRS).

Uncut diamond giant ALROSA lost 1.95% after announcing plans to buy additional 8.2% in Angolan diamond miner Catoca for $70 million to boost its stake in the company to 41%, Kovalyov said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.9	191.96	7.543
Gazprom	-0.7	122.50	2.779
Lukoil	+0.02	3065.00	1.678
RusHydro	+3.76	0.85	1.640
Norilsk Nickel	-0.01	9648.00	1.058

(58.0102 rubles – U.S. $1)

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