Russian stocks fall on oil price drop, negative foreign mood

MOSCOW, Sep 17 (PRIME) -- The Russian stock market fell on Friday, having failed to find any supporting factors amid lower oil prices and negative external background, analysts said.

The MOEX Russia Index dropped 0.25% to 4,035.17 and the RTS decreased 0.60% to 1,745.04.

Yevgeny Linchik of Sber Asset Management said that the general average market trend remains positive and attributed the indexes’ fall to local correction.

“Today is traditionally called ‘Witch Friday’ because of strong volatility of all markets due to the expiration of a large number of futures and options on the world markets,” Linchik said.

Andrei Kochetkov of Otkritie Broker said that the financial sector of the market was supported by a suggestion of a Finance Ministry official that Russian banks should raise their dividends to 75% of net income from 50%.

The oil and gas sector traded in the red zone due to crude’s failure to breach the level of U.S. $76 per barrel, as well as natural gas prices slipping on the European market, most likely having reached their ceiling, he added.

The Russian ruble eased on Friday as well amid well-founded concerns of further multiple key rate increases, Kochetkov said.

Nikolai Pereslavsky of CMS Institute said that the Russian currency eased due to the lack of support from crude oil prices, which showed poor dynamics today.

The external factors were moderately negative for the Russian market, Dmitry Babin of BCS Financial Group said. The Asian markets closed in the green zone, while the European markets struggled to continue the previous day’s upward dynamics, while the U.S. stocks fell at opening amid concern over the coming winding down of the Federal Reserve’s pandemic relief support.

Babin also attributed today’s negativity to the Friday factor, forcing many investors “to reduce their positions for fear of realizing any risks over the weekend.”

UC RUSAL shares lead the liquid securities market, growing due to a renewed rise in aluminum prices, Babin said.

Transneft, Lukoil and Novatek stocks decreased due to the crude’s poor performance, Babin said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Gazprom	-0.87	335.55	19.527
Sberbank	+1.45	331.73	17.066
Norilsk Nickel	-0.36	23400	14.341
Lukoil	-0.83	6608.5	8.502
Rosneft	-1.01	570.65	5.127

(72.4329 – U.S. $1)

End