Russian stocks fall on weak ruble, oil, European indices decline

MOSCOW, Dec 30 (PRIME) -- Russian stocks decreased on Wednesday in thin pre-New Year trade due to a low oil price and ruble depreciation, depressed by the European indices’ fall and weak manufacturing statistics, analysts said.

The MICEX contracted 0.11% to 1,761.36 and the RTS went down 1.64% to 757.04.

“The Russian indices saw a correction after yesterday’s growth on the back of falling European trading floors and the continued oil price decrease,” Igor Kovalyov, an analyst at InstaForex, said.

The fall of the dollar-denominated RTS was more significant due to the ruble depreciation to new record lows against the U.S. dollar, caused by a surge in demand for the foreign currency. Oil decreased to about $36.7 per barrel of Brent by the closing bell.

Andrei Kochetkov, an analyst at Otkritie Brocker, said that investor mood was set by expectations that the ruble and oil will fall further in January.

Kovalyov said that trading was also depressed by weak industrial statistics. In December, Russia’s Manufacturing PMI contracted to 48.7 from 50.1 in November.

Gas giant Gazprom fell 1.02% to 136.09 rubles after it abandoned a 2.879 billion ruble tender for construction and installation works at the Ukhta-Torzhok gas pipeline, he said, adding that although the company did not explain the decision, it is likely to be caused by actions of the antitrust.

Grocery retailer Magnit, which approved allocating 16.999 billion rubles in dividends for January–September, increased 2.33% to 11,228 rubles.

In 2015, the RTS decreased about 2.6% due to the ruble devaluation, while the MICEX strengthened 26.2% and finished the year at a comfortable level, Kovalyov said.

Below are the MICEX’ five most active stocks on Wednesday:

Company	Change, %	Last price, rbl	Trading volume, bln rbl
VTB	+1.92	0.0797	6.087
Sberbank	-0.55	101.26	3.933
Gazprom	-1.02	136.09	2.396
Lukoil	-0.33	2345.9	1.389
Magnit	+2.33	11228.00	1.198

(72.5066 rubles – U.S. $1)

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