MOSCOW, Jul 24 (PRIME) -- Russian stocks contracted on Wednesday as the E.U. released rather bleak economic statistics, while unyielding geopolitical tensions in the world prompt investors to stay away from risky assets, analysts said.
The MOEX Russia Index fell 0.67% to 2,682.91 and the RTS decreased 0.44% to 1,339.62.
“Attempts of the Russian market to grow were quickly stifled by weak statistics coming from Europe. It is well-known that Europe remains Russia’s largest trade partner, so contraction of industrial activity may lead to reduction in procurements of Russian steel and natural gas,” Andrei Kochetkov, senior analyst at Otkritie Broker, said.
This resulted in sales in shares of metals companies and gas giant Gazprom, which lost 2.48% to 212 rubles, Kochetkov said.
“The exchange of threats of trade sanctions between the E.U. and the U.S. and the uncertainty around prospects that the U.S. and China may reach a trade deal exert additional pressure on the market,” Alexander Osin, head of department for operations on the Russian stock market at investment company Freedom Finance, said.
Geopolitical tensions in the Middle East and East Asia also support demand for high-quality shares, Osin said.
Yelena Kozhukhova, analyst at investment company Veles Capital, said that prospects of a further investigation into activity of the largest hi-tech companies by the U.S. Department of Justice undermined trade in shares of this sector.
Kochetkov also said that independent gas producer Novatek was among the leaders today and grew 0.76% to 1,307 rubles thanks to strong performance. The company’s net profit soared to 450.971 billion rubles in January–June from 75.162 billion rubles in the same period of 2018.
Below are the MOEX Russia Index’ five most active stocks on Wednesday:
| Company | Change, % | Last price, rbl | Trading volume, bln rbl |
|---|---|---|---|
| Gazprom | -2.48 | 212.00 | 9.545 |
| Sberbank | -0.79 | 230.65 | 6.355 |
| Lukoil | -1.31 | 5134.50 | 2.774 |
| Moscow Exchange | -1.65 | 90.00 | 1.409 |
| Tatneft | -0.88 | 741.30 | 1.210 |
(63.1290 rubles – U.S. $1)
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