Russian stocks fall on oil price contraction, US–China concerns

MOSCOW, Sep 30 (PRIME) – The Russian stocks fell on Monday as global investors were rattled by the news about a possible limit of U.S. investment in China, while contraction of oil prices did not support buyers on the national market, analysts said.

The MOEX Russia Index fell 0.39% to 2,747.18 and the RTS decreased 1.02% to 1,333.91.

Andrei Kochetkov, analyst at Otkritie Broker, said that the U.S. financial media reported that the White House may limit investment of U.S. companies in China and initiate delisting of Chinese companies from the U.S. bourses. These reports can torpedo the October 10 negotiations of the two states even before the launch, he said.

“The markets are now in a state of uncertainty prior to the start of trade negotiations between Washington and Beijing, and even unverified information about delisting Chinese companies from the U.S. trade floors may create a strong capital outflow,” Yaroslav Kabakov, director for strategy at investment company Finam, said.

“The Chinese economic statistics turned out to be better than expected in September, but it does not cancel the risks of a further economic slowdown. It is obvious that oil prices were under pressure because of that,” Kochetkov said.

Kabakov also said that strengthening of the U.S. dollar also exerted some pressure on the oil prices, pushing the majority of Russian oil and gas companies down. Gas giant Gazprom looked weaker than the market and lost 1.36% to 225.90 rubles.

Kochetkov said that metals giant Norilsk Nickel outperformed the market and gained 1.32% to 16,686 rubles thanks to the increase in prices for copper and palladium.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.15	227.71	6.877
Gazprom	-1.36	225.90	6.008
Norilsk Nickel	+1.32	16686.00	3.009
Lukoil	-0.32	5378.50	2.582
Surgutneftegas	+1.62	35.40	1.820

(64.4156 rubles – U.S. $1)

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