Russian stocks flat as oil price rises, cbank keeps key rate at 10%

MOSCOW, Dec 16 (PRIME) -- The Russian stock market closed near the level of opening on Friday because a mixed trend in the morning, with the RTS index rising and the MICEX falling on an oil price increase gave way to consolidation later in the day, when the central bank said it retains the key rate at 10%, analysts said.

The MICEX fell 0.26% to 2,231.41 and the RTS decreased 0.22% to 1,135.56.

“A brief increase in the morning, stimulated by a certain improvement of the external background faded quite fast. In general, we can state that the local market has entered a temporary balance after quite large-scale movements which took place over the last few days,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said

Finam analyst Bogdan Zvarich said that an oil price recovery to a level above U.S. $54 per barrel and an improvement of moods on European trading floors supported Russian assets.

The MICEX was falling due to the strengthening of the ruble, he said.

Manzhos said that the publication of a report by the central bank retaining its key rate at 10% was a negative factor for trading activity in Russia, which is why the dynamics of the MICEX and the RTS almost came to a halt.

According to Manzhos, VTB shares started to catch up on Friday with an earlier MICEX growth and gained after a period of consolidation. The news that the bank had approved its 2017–2019 strategy with a planned net profit rise to more than 200 billion rubles in 2019 was perceived positively.

Gazprom was weaker than the market on statements by CEO Alexei Miller that the company is vulnerable to possible illegal gas outtakes in Ukraine during transit to the E.U.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.58	173.9	8.767
Gazprom	-1.3	156.2	4.997
Lukoil	-0.93	3352	3.578
ALROSA	-1.61	97.41	3.200
VTB	+1.94	0.0737	2.875

(61.6368 rubles – U.S. $1)

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