MOSCOW, Jun 14 (PRIME) -- Russian stocks contracted on Friday due to a general investor flight for quality due to the unclear future of the global economy, while the central bank’s reduction of key rate pushed top bank Sberbank down, analysts said.
The MOEX Russia Index fell 0.69% to 2,739.28 and the RTS decreased 0.44% to 1,341.05.
“The international background did not favor buyers today. Demand for risk is still weak due to the ongoing tensions between the U.S. and China. The MSCI Emerging Markets index shrank by 0.5%, the price of gold added almost 1.2% to U.S. $1,360 per ounce, and the yield of U.S. 10-year treasuries decreased to 2%, which taken together may be seen as indirect signs that capital is fleeing the risk,” Anastastia Sosnova, analyst at investment company Freedom Finance, said.
Yelena Kozhukhova, analyst at Veles Capital, attributed the fall to profit taking.
Otkritie Broker’s analyst Andrei Kochetkov said that local bulls drove the MOEX Russia Index to a new record high of 2,772 early in the day, but a decision of the central bank to cut the key rate by 25 basis points to 7.5% reversed the trend.
“Traditionally, reduction of the central bank’s key rate has a negative impact on the shares of financial organizations. The shares of Sberbank switched into the red,” he said.
Sberbank contracted 0.70% to 238.80 rubles.
Kochetkov also said that shares of Rosneft, which fell 3.32% to 408 rubles due to a dividend cut-off, also dragged the Russian market down.
Below are the MOEX Russia Index’ five most active stocks on Friday:
| Company | Change, % | Last price, rbl | Trading volume, bln rbl |
|---|---|---|---|
| Sberbank | -0.70 | 238.80 | 12.115 |
| Gazprom | -1.25 | 231.51 | 5.927 |
| Lukoil | -0.61 | 5178.50 | 3.873 |
| Rosneft | -3.32 | 408.00 | 2.825 |
| ALROSA | -1.62 | 85.10 | 2.312 |
(64.6314 rubles – U.S. $1)
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