Russian stocks fall on ruble increase, dividend disappointment

MOSCOW, Oct 31 (PRIME) -- The Russian stock market fell on Tuesday because of ruble strengthening and disappointing dividend news, analysts said.

The MOEX Russia Index fell by 0.81% to 3,200.97, and the RTS index decreased by 1.32% to 1,079.88.

"The Russian market declined significantly on Tuesday in the first half of the day. Negative sentiment formed because of strengthening of the ruble and the corporate news," Otkritie Research analyst Andrei Kochetkov said.

The strengthening trend persists, which will undermine the stock market increase, he said.

Veles Broker analyst Yelena Kozhukhova said that state bonds and deposits have a fixed interest of about 15%, which is why recommended dividends of Russian companies with a yield below 8% are less attractive for investors.

"Polymetal plunged because of disappointment about the lack of plans on interim dividends," Kochetkov said. The shares decreased 1.41%.

Fix Price increased 0.91% after a solid financial report and confirmation of commitment to paying dividends, Kochetkov said.

Acron fell 0.47% as its financial results for the first nine months of the year worsened dramatically after prices for fertilizers fell, while the tax burden grew, the analyst said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Mechel	-1.88	271.6	8.709
Lukoil	-1.08	7169.5	6.718
Sberbank	-0.38	268.86	6.487
Surgutneftegas prefs	-0.19	56.9	3.527
Gazprom	+0.65	168.24	2.463

(93.2435 rubles – U.S. $1)

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