Russian stocks fall over negative environment, sanction woes

MOSCOW, Feb 6 (PRIME) -- Russian stocks contracted on Wednesday in a slight correction after setting record highs due to an unfavorable external environment and news about new U.S. sanctions, analysts said.

The MOEX Russia Index fell 0.30% to 2,539.73 and the RTS decreased 0.63% to 1,215.83.

“On Wednesday, the Russian stock market contracted due to several factors, particular due to a negative piece of news that the U.S. Senate approved a draft act on sanctions against Syria and its allies – Russia and Iran,” Anastasia Sosnova, investment company Freedom Finance’s analyst, said.

,Dmitry Babin, analyst at BCS Broker, said that the the MOEX Russia Index set a new record high slightly above 2,550 in the morning, but after that Russian stocks slumped in reaction to a significant worsening of the external background -- oil prices and global bourses dipped showing disappointment by a speech that the U.S. president gave to Congress.

U.S. President Donald Trump did not elaborate on trade negotiations between the U.S. and China, and was unable to lift any concerns over a political conflict between the president and the lawmakers over the wall on the border with Mexico, Babin said.

“Players of global stock markets are tired of the trade dispute between the U.S. and China, and they decided to focus on other key problems and risks, specifically on weak economic factors that the world’s largest economies have shown recently,” Babin added.

Andrei Kochetkov of Otkritie Broker said that the Brent oil price again fell below U.S. $62 per barrel, which resulted in sales in shares of some oil companies. Rosneft contracted 1.62%.

The market of iron ore was in upbeat mood over a force majeure with exports from Brazil. It did not turn into a sector-wide increase, but shares of metals companies Norilsk Nickel, Novolipetsk Steel (NLMK), and Magnitogorsk Iron and Steel Works (MMK) ended the day gaining 0.75%, 1.24%, and 1.15%, respectively, Kochetkov said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.58	216.59	10.000
Lukoil	+0.48	5461.00	3.103
Rosneft	-1.62	421.55	1.815
Norilsk Nickel	+0.75	13690.00	1.611
Gazprom	-0.63	163.21	1.565

(65.5691 rubles – U.S. $1)

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