Russian stocks fall on negative environment in line with oil prices

MOSCOW, Feb 2 (PRIME) -- Russian stocks contracted pummeled by the negative external background, worldwide sales of risky assets, and falling oil prices, analysts said.

The MOEX Russia Index fell 1.17% to 2,281.84 and the RTS decreased 1.57% to 1,272.76.

“On Friday Russian stocks were under pressure…Oil prices also played against the market today,” Irina Rogova, an analyst at Forex Club group of companies, said.

“Besides that, pressure was partially exerted by the U.S. labor market statistics. New jobs grew by 200,000, and the increase of wages sped up to 2.9% in annual terms. This may boost pressure on prices and to a hike of the key rate by the Federal Reserve”

Vasily Oleinik, an analyst at investment company Finam, said that almost all stock markets in the world were in the red zone.

“The main reason for the flight from risky assets is the usual worsening of the situation at the U.S. treasuries market. We have been seeing flight from the American sovereign securities for several weeks, and now the world has started to feel the domino reaction. Large-scale sales have been going on the European debt market for two days, and the sales wave reached the Japanese bonds this morning,” Oleinik said.

Andrei Kochetkov, an analyst at Otkritie Broker, said that the investor mood was also soured by expectations of possible new U.S. sanctions. “The lack of direct action following the so-called Kremlin Report incited harsh criticism of the Donald Trump administration, which may make the White House take some actions,” he said.

Kochetkov also said that shares of steelmaker Severstal lost 2.53% to 918 rubles after the company said that its net profit fell 16.4% in 2017, as calculated under International Financial Reporting Standards, while its revenue rose 32.7%.

Common shares of Aeroflot fell 1.37% to 133.50 rubles on expectations of weak financial results as calculated under Russian Accounting Standards. The market also disliked conditions of a company’s contract with state industrial corporation Rostec on leasing 50 MC-21 planes, Kochetkov said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-2.23	257.32	16.806
Gazprom	-0.96	144.00	5.665
Magnit	-3.58	5032.00	4.176
Lukoil	+0.97	3797.00	2.613
Norilsk Nickel	-1.23	11496.00	2.242

(56.2613 rubles – U.S. $1)

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