Russian stocks firm in thin trade on strengthening ruble

MOSCOW, Oct 22 (PRIME) -- Russian stocks firmed slightly on Thursday on the back of the ruble strengthening and uncertainty about the U.S. key rate rise, but volumes were thin ahead of an upcoming reporting period, analysts said.

The MICEX rose 0.13% to 1,712.10 and the RTS increased 0.45% to 860.75.

“Some strengthening of the ruble against the dollar caused the outstripping growth of the RTS… At the same time, the MICEX is still within quite a narrow band of 1,702-1,723 for a fourth day in a row. Its rather weak rise is consolidation in the absence of drivers,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

Investors mostly abstained from trading ahead of a reporting period, Sofya Kirsanova, an analyst at Raiffeisen Capital, said, adding that the unclear situation with the U.S. key rate rise also limits trading volumes.

Russian metals companies sagged on publication of weak July–September financial results by steel maker Severstal, Manzhos said.

Pipe maker TMK fell 3.72% to 51.8 rubles, Magnitogorsk Iron and Steel Works (MMK) decreased 3% to 21.632 rubles, Novolipetsk Streel (NLMK) weakened 1.84% to 73.10 rubles and Severstal fell 0.68% to 717.6 rubles.

Metals giant Mechel strengthened 2.90% to 40.43 rubles per preferred share and 1.35% to 59.24 rubles per common share on the news that the company may reach a debt settlement with top lender Sberbank, Bogdan Zvarich, an analyst at Finam, said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.48	85.53	7.864
Gazprom	-0.17	139.25	3.493
Norilsk Nickel	+1.65	9545.00	2.721
Lukoil	+1.02	2334.50	1.850
VTB	-0.57	0.07451	1.777

(62.6309 rubles – U.S. $1)

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