Russian stocks fall pressured by negative background

MOSCOW, Jun 29 (PRIME) -- Russian stocks fell on Thursday as higher oil prices did not outweigh the negative impact of the external background, while investors were still digesting comments by European banks’ heads, analysts said.

The MICEX fell 0.58% to 1,881.04 and the RTS decreased 0.24% to 1,000.45.

“The Moscow exchange’s index eased on Thursday. The increase in oil prices…was unable to compensate the negative external background. The world indices fell on Thursday, while consumer confidence index of the Eurozone and Germany’s CPI were at the level expected by the market,” Yegor Dakhtler, an analyst at investment company Veles Capital, said.

“A mixed mood dominated on the world stock markets today, as investors have not worked out their reaction to toughening rhetoric of central banks. The lifting of the stimulus policy worsens attractiveness of risky shares, but the mood of regulators shows improvement of the macroeconomic picture…The Russian market was no exception,” Andrei Dirgin, head of Alfa-Forex analysis department, said.

Pavel Salas, regional director for Russia and CIS at trading and multi asset brokerage company eToro, said that European Central Bank President Mario Draghi hinted at possible suspension of the quantitative easing program and higher interest rates, and Governor of the Bank of England Mark Carney also implied that he might support an interest rate increase.

“The Russian benchmarks didn’t find drivers for more active movements today. Investors decided to have a break and analyze the recent aggressive rhetoric of European regulators. But the general background was supportive due to a continuous restoration of oil prices,” Igor Kovalyov, an analyst at InstaForex, said.

Sofya Kirsanova, an analyst at managing company Raiffeisen Capital, said that metals companies and coal producers were among the gainers thanks to growing prices for iron ore and coal in China, which made Russian producers revise their prices for flat and sectioned rolled steel.

Shares of Novolipetsk Steel (NLMK) went up 1.90% to 116 rubles, and of Magnitogorsk Iron and Steel Works (MMK) gained 0.62% to 33.505 rubles; and shares of coal producers Mechel and Raspadskaya increased 0.33% to 138.35 rubles and 0.25% to 60.90 rubles, respectively, Kirsanova said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.17	143.80	7.090
Gazprom	-0.45	119.16	3.174
Lukoil	-0.05	2873.00	2.075
Rosneft	+0.18	333.00	1.780
Magnit	-3.89	9103.00	1.403

(59.5415 rubles – U.S. $1)

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