Russian stocks fall on low activity ahead of holidays, cheap oil

MOSCOW, Nov 3 (PRIME) -- Russian stocks decreased on Thursday amid a lull on the market ahead of long holidays and as oil prices resumed decline after unsuccessful growth attempts, analysts said.

The MICEX fell 0.31% to 1,962.71, and the RTS decreased 0.19% to 971.20.

“The Russian stock market continued falling on Thursday in line with decreasing oil prices amid reduced investor activity ahead of long holidays,” Veles Capital analyst Alexander Kostyukov said.

Forex Club analyst Irina Rogova said that “restrained dynamics of Russian indices were mostly caused by risks connected with the U.S. presidential election slated for next week.”

“Brent oil futures made attempts to restore today. But they were not successful. As a result, oil resumed decline moving to Wednesday’s minimum of U.S. $46.48 (per barrel),” Rogova said.

Oil and gas company Surgutneftegas’ preferred shares continued growing, having closed 1.03% higher amid outlined medium-term trend for the ruble depreciation, which gives investors a hope of a possible revaluation of the company’s foreign currency reserves at the end of 2016, Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

Troubled airline Transaero fell 13% in a downward correction after Wednesday’s growth of 63.45% that was caused by reports that the company’s board of directors plans to consider resuming the airline’s operations, Manzhos said.

Power producer Unipro, earlier known as E.ON Russia, decreased 2.08% after the company’s board of directors recommended paying 11.58 kopecks per share in dividends for January–September, including 7.27 kopecks from the net profit of the period and 4.31 kopecks from undisbursed profits of previous years.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.27	142.75	5.754
Gazprom	-0.65	139.90	3.486
Lukoil	+0.03	2984.00	1.585
Surgutneftegas pref	+1.03	29.30	1.524
Surgutneftegas	-0.35	28.50	1.293

(63.4166 rubles – U.S. $1)

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