Russian stocks fall on lower oil price, Ukrainian conflict worries

MOSCOW, Feb 19 (PRIME) -- Russian stocks experienced a downward correction on Thursday after a Wednesday increase as the Brent price fell to $58 per barrel and new threats to implementation of ceasefire agreements on the Ukrainian conflict emerged, analysts said.

The MICEX fell 0.65% to 1,797.87 and the RTS decreased 2.46% to 906.51.

“Russian stocks have had to demonstrate a (downward) correction after a significant growth on Wednesday,” Natalya Samoilova, head of Golden Hills-Kapital analytical department, said, adding that oil prices dynamics have continued to play a huge role in decrease of the stock market.

Brent dropped below U.S. $60 per barrel and continued falling further to around U.S. $58.1 by the closure of the Russian trading session, she said.

News concerning developments over the Ukrainian military conflict, as well as expectations for a publication of U.S. oil stocks, which slightly fell on the week, have exerted certain pressure on investors’ mood during the day, Sofiya Kirsanova, analyst at Raiffeisen Capital.

Ukraine’s President Pyotr Poroshenko asked the UN and the European Council to secure a peace-support mission in the country, but the idea was bashed by the self-proclaimed Donetsk republic's leader Eduard Basurin, and this posed a new threat to implementation of Minsk agreements on a ceasefire, she said.

Some Russian retailers, including Dixy Group and M. Video fell in light of weak sales in January, Kirsanova said. Dixy Group fell 5.4% and M.Video decreased 3.74%.

AFK Sistema fell 3.45% on the news that Ural-Invest cannot repay a full sum under an AFK Sistema’s 70.7 billion ruble claim against it, as there are no sufficient funds, Kirsanova said.

Mechel continued growing after it sold its U.S.-based loss-making mining asset Mechel Bluestone on Wednesday, the growth leader rose about 15% on Thursday, analysts said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-3.43	73.78	17.678
Gazprom	-1.29	160.90	8.179
Lukoil	-0.17	2994.80	3.161
Norilsk Nickel	+1.93	11355.00	2.334
Rosneft	-2.03	275.75	1.880

(62.4001 rubles – U.S. $1)

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