Russian stocks fall on geopolitical tensions, mixed background

MOSCOW, May 31 (PRIME) -- The Russian stock market eased on Monday due to a slight worsening of the geopolitical situation, while the external background provided mixed drivers for local players, analysts said.

The MOEX Russia Index fell 0.24% to 3,721.63 and the RTS decreased 0.39% to 1,597.54.

Andrei Kochetkov, leading analyst for global research at Otkritie Broker, said that the geopolitical background worsened due to unfavorable statements of Russian officials.

“Deputy Foreign Minister Sergei Ryabkov said that positions of Russia and the U.S. were not concurrent prior to the meeting of the heads of states. He also said that Moscow might voice some signals that are uncomfortable for Washington. The Russian Foreign Ministry also assumes that the sanction spiral will continue, and that threats of a SWIFT shut-off may emerge,” Kochetkov said.

Vladimir Lyashchuk, senior analyst at Promsvyazbank, said that the background for Russian shares was mixed while markets of the U.S. and the U.K. were on holidays.

“The European indices were losing up to 0.4% as of 5.35 p.m. Moscow time, but the Brent oil price grew by 1.1%,” Lyashchuk said.

“The MOEX Russia Index and the RTS Index failed to develop the upward trend of the end of the previous week, and they fell moderately in line with foreign bourses,” Veles Capital’s analyst Yelena Kozhukhova said.

Kochetkov also said that shares of metals companies Severstal and Norilsk Nickel lost 4.33% and 2.90% respectively, due to a dividend cut-off and due to pressure exerted on shares of metals companies by a statement of Deputy Prime Minister Andrei Belousov that the companies do not share their excessive profits with the state.

Internet giant Yandex fell 0.21% even though the company announced acquisition of online clothes store KupiVIP. The Russian market is becoming cramped due to an excess of generic hybrid projects, he added.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.11	309.91	6.774
Norilsk Nickel	-2.90	26348.00	6.504
Gazprom	-0.59	260.45	5.231
Severstal	-4.33	1682.00	3.547
Tatneft	+1.14	498.10	2.540

(73.5870 rubles – U.S. $1)

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