Russian stocks fall on profit taking, news of military spending

MOSCOW, Oct 26 (PRIME) -- The Russian stock market contracted on Wednesday as some investors tried to take profit after Tuesday’s increase, while the government’s funding of the special operation in Ukraine for the next three years undermined the market, analysts said.

The MOEX Russia Index fell 0.47% to 2,120.58 and the RTS decreased 0.22% to 1,088.59.

“The Russian market was in a serious disarray today, as the MOEX Russia Index switched into the red zone in the second half of the day after a great start. Pressure on the market increased on the news that the Finance Ministry and the Defense Ministry have coordinated funding of the military operation in the 2023–2025 budget, signaling that the conflict will not end soon,” Alexander Kovalyov, analyst at Finam, said.

Vladimir Lyashchuk, senior analyst at Promsvyazbank, said that the Russian market was in a downward correction as the market decided to take profit following Tuesday’s growth.

“Weak dynamics (of the Russian market) was largely caused by technical correction and profit taking of some investors. Also, the markets have finished pricing in the positive momentum connected to Gazprom’s dividend payments and possible reinvestment of the dividends,” managing company Pervaya’s portfolio manager Sofiya Kirsanova said.

Kovalyov also said that the shares of pulp and paper holding Segezha Group gained 1.46% to 5.362 rubles after real estate developer PIK Group had said that it would not buy the assets of Swedish furniture retailer IKEA in Russia.

Lyashchuk said that the shares of oil major Lukoil rose by 0.38% to 4,587 rubles as the dividend idea was still present in the securities.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.19	124.12	12.797
Gazprom	-0.52	171.49	5.171
Lukoil	+0.38	4587.00	2.751
Rosneft	+1.11	336.10	2.660
Norilsk Nickel	-2.61	13118.00	2.516

(61.3326 rubles – U.S. $1)

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