Russian stocks fall on oil price contraction, unfavorable environ

MOSCOW, May 27 (PRIME) – The Russian stock indices decreased on Wednesday following contraction in oil prices, while a new twist in the U.S.–China conflict only added fuel to the sales, analysts said.

The MOEX Russia Index fell 0.47% to 2,741.02 and the RTS decreased 1.04% to 1,212.20.

“The MOEX Russia Index and the RTS Index switched into the red zone near the end of the trading session following downward dynamics of oil prices,” investment company Veles Capital’s analyst Yelena Kozhukhova said.

Sales on the oil market sped up on reports about Russia’s wish to start raising production in July and Saudi Arabia’s opposition to that. Investors were seriously concerned by the possibility of another conflict between the two countries taking into account the spring slump of the market, Kozhukhova said.

The Brent price fell by 4.811% to U.S. $34.43 per barrel as of 6.22 p.m. Moscow time, according to the ICE exchange.

 “The external background for the Russian market could have been better but not for the statement of U.S. President Donald Trump about Washington’s reaction to implementation of the national security law in Hong Kong. This creates concern that Beijing will respond to the U.S. sanctions with mirror measures, and the pendulum of confrontation will gain new momentum and hurt the hard won trade agreement of the first phase,” Otkritie Broker’s senior analyst Andrei Kochetkov said.

Kochetkov also said that shares of national flagship carrier Aeroflot rose by 4.62% to 77.90 rubles after the company received a 3 billion ruble low-interest loan from Sberbank.

Shares of gold producers Polyus and Polymetal International lost 3.14% to 11,262.50 rubles and 2.80% to 1,408.40 rubles, respectively, as the price of gold fell below $1,700 per ounce, Kochetkov said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+2.32	198.51	22.861
Gazprom	-1.08	194.73	10.803
Lukoil	-1.70	5352.50	9.402
Norilsk Nickel	-0.04	22110.00	6.970
Rosneft	+0.13	374.90	4.563

(71.1408 rubles – U.S. $1)

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