Russian stocks fall on geopolitical uncertainty

MOSCOW, Feb 9 (PRIME) -- Russian stocks fell on Thursday due to an uncertain geopolitical situation, and in spite of higher oil prices and a generally positive external background, analysts said.

The MICEX fell 0.71% to 2,173.98 and the RTS decreased 0.13% to 1,163.19.

“Russian indices found no reason to grow, though the background was moderate. Futures for U.S., European, and Asian indices grew during the day. Oil prices also showed positive dynamics,” Irina Rogova, an analyst at Forex Club group of companies, said.

“This is why we may say that MICEX dynamics was guided by technical factors, as the index moved to the lower point of the 2,150–2,300 point range that was established previously. But the unwillingness of investors to risk due to political uncertainty in Europe also contributed to that,” Rogova said.

Andrei Kochetkov, an analyst at Otkritie Broker, said that the mood of statements of the U.S. administration fuels no hopes that the anti-Russian sanctions will be lifted soon and that relations between the countries will become productive.

“In addition to that, the market has been long waiting for a downward correction to healthier levels, where the interest of buyers may return,” Kochetkov said.

Kochetkov also said that the central bank’s policy restricted the impact of foreign currency purchases of the Finance Ministry on the ruble, and the Thursday increase of the rate only confirmed that. This is why major exporters were under pressure, including steelmaker Severstal losing 2.78% to 906.10 rubles, aluminum giant UC RUSAL falling 2.51% to 32.18 rubles, and uncut diamond mining giant ALROSA contracting 0.88% to 103.88 rubles.

Shares of fertilizer producer PhosAgro fell 6.59% to 2,522 rubles, after Adorabella Limited beneficiary owned by Andrei Guryev sold 5,827,500 million common shares in the company, or 4.5% of PhosAgro’s charter capital, for 2,550 rubles per paper, Kochetkov said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.40	168.80	8.265
Gazprom	-2.13	142.11	7.457
Lukoil	-0.99	3266.50	2.433
Severstal	-2.78	906.10	2.174
PhosAgro	-6.59	2522.00	1.946

(59.5129 rubles – U.S. $1)

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