Russian stocks fall on unfavorable environ, China sanction talks

MOSCOW, Jul 8 (PRIME) – The Russian stocks contracted on Wednesday due to the unfavorable external background and media reports about possible measures that Washington can take against China over the Hong Kong situation, analysts said.

The MOEX Russia Index fell 0.33% to 2,815.83 and the RTS decreased 0.18% to 1,245.54.

“The Russian stocks eased due to a moderately negative external background,” Yelena Kozhukhova, analyst at Veles Capital, said.

The European bourses fell with the Euro Stoxx 50 losing 0.69% on continuing profit taking as no significant macroeconomic data have been released. The coronavirus pandemic is still a negative factor for the market mood, Kozhukhova said.

Alexander Osin, head of the department for trade operations on the Russian stock market at investment company Freedom Finance, said that the market mood was soured by reports about discussions of U.S. President Donald Trump’s advisors about exerting pressure the on Chinese financial sector following Beijing’s decision to destroy Hong Kong’s autonomy.

“In case Washington approves these measures, HSBC Holdings Plc will be the first to be hit,” Osin said.

Metals giant Norilsk Nickel gained 1.91% to 18,928 rubles on the news that it would challenge a 148 billion ruble environmental fine. Chances of the company to reduce the fine in Russian courts are high, and even if the sum is not reduced here, the company will be able to sue Russia in international courts, Yemelyanov said.

Osin also said that Russia’s second largest bank VTB lost 1.01% to 0.035375 rubles possibly due to falling real estate developer PIK Group, where VTB is the core shareholder.Below are the MOEX Russia Index’ five most active stocks on Wednesday:

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.53	209.42	8.567
Lukoil	-0.61	5430.50	7.191
Norilsk Nickel	+1.91	18928.00	6.388
Gazprom	+1.43	200.79	5.519
MTS	-5.24	318.95	3.138

(72.1719 rubles – U.S. $1)

End %%md/jst%%