Russian stocks fall together with risky assets, oil prices

MOSCOW, Jun 10 (PRIME) – The Russian stocks contracted on Wednesday together with the other risky assets and the oil price, analysts said.

The MOEX Russia Index fell by 0.38% to 2,785.18 and the RTS decreased by 0.52% to 1,277.58.

“The Russian stock induces fell in a downward correction together with the other risky assets,” Yelena Kozhukhokva, analyst at Veles Capital, said.

The market expects the U.S. to report a weekly increase in oil stocks, which pushed the prices down, Kozhukhova said.

The Brent oil price lost 1.263% to U.S. $40.66 per barrel as of 6.07 p.m. Moscow time, according to the ICE exchange.

“The Russian stock market found itself between a rock and a hard place today. On the one hand, there was an outflow of global investors due to the uncertainty about the Federal Reserve System’s long-term strategy. On the other hand, oil prices fell. The market reassessed the risks prior to the Fed’s announcement of a real recovery forecast for the U.S. economy,” Valery Yemelyanov, analyst at Freedom Finance, said.

Yemelyanov also said that real estate developer LSR Group outperformed the market and grew 3.46% to 676.60 rubles after J.P. Morgan upgraded its recommendation on the paper to Buy from Hold.

Otkritie Broker’s senior analyst Andrei Kochetkov said that preferred shares of power utility Lenenergo were among the biggest losers falling by 6.76% to 157.25 rubles due to a dividend cut-off.

Diamond mining giant ALROSA decreased by 1.73% to 64.15 rubles as the company’s diamond sales plummeted by about 85% on the year in May and by about 41% on the year in January–May, Kochetkov said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-2.16	212.53	19.663
Gazprom	-1.51	201.75	8.410
Norilsk Nickel	-0.04	20240.00	8.393
Lukoil	-1.53	5342.00	8.163
Aeroflot	-3.38	89.28	5.260

(68.6745 rubles – U.S. $1)

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