Russian stocks fall on geopolitical threats, correcting crude

MOSCOW, Sep 19 (PRIME) -- Russian stocks edged down on Tuesday due to rising global geopolitical risks and the beginning of a downward correction of oil prices, analysts said.

The MICEX decreased 0.49% to 2,048.99 and the RTS lost 0.93% to 1,108.71.

“A slide of the MICEX benchmark is partially linked with technical reasons. The growth was restrained by a resistance line of 2,065. However, it was not the only reason for the fall,” Forex Club analyst Irina Rogova said.

Veles Capital analyst Alexei Adonin said that the Russian market witnessed idealess trading with all major blue chips including Sberbank, Gazprom and Rosneft in the negative territory.

Rogova said that investors’ interest to risky assets may fall in the wake of another U.S. President Donald Trump’s statement that the U.S. will be forced “to totally destroy North Korea” if it poses a threat to the country or its allies. Besides, the U.S. Federal Reserve, which is to announce the results of its meeting on Wednesday, is unlikely to raise the key rate until the end of 2017.

The expert also said that the Brent oil price has sagged to $55.22 per barrel suppressed by the U.S. Department of Energy’s shale oil output forecast for October.

Power grid operator Rosseti dropped 5.28% to 1.059 rubles on the news it may issue additional 9 billion ruble shares.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.7%	184.85	7.684
Gazprom	-0.79%	121.75	3.908
Lukoil	-0.25%	3025	1.903
Norilsk Nickel	+0.69%	9613	1.375
Moscow Exchange	+0.26%	115.3	1.283

(57.6242 rubles – U.S. $1)

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