Russian stocks flat on gas contract news, rising ruble

MOSCOW, Dec 20 (PRIME) -- The Russian stock market closed near the level of opening on Friday because an effect of the news that Russia and Ukraine reached a preliminary gas agreement and rising shares of Gazprom was offset by a negative influence of a strengthening ruble, analysts said.

The MOEX Russia Index grew 0.25% to 3,015.93, and the RTS index increased 0.28% to 1,523.77.

“The domestic market expressed readiness to grow but a strengthening ruble destroyed all theplans. Exporters are selling foreign currency to pay taxed on the back of a reduction of the currency market liquidity, which leads to excessive supply and a strengthening of the ruble,” Otkritie Broker analyst Andrei Kochetkov said.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, said that Gazprom was the market leader on Friday, rising on the news around continuing negotiations on gas transit to Europe through Ukraine from 2020. This issue is related to many other economic and political problems that might be solved along the way, he said. According to the latest statements, Ukraine and Russia have reached a preliminary agreement on the contract.

Manzhos said that Magnit grew impressively in the morning, after a statement by First Deputy CEO of VTB Yury Solovyov that the bank believed in the plan of transformation of the retailer despite its length and that the bank saw the shares of the company underpriced. VTB was considering raising the stake in Magnit, the analyst said. Magnit rose 0.64% on Friday.

Yandex clA shares saw a considerable demand and increased 2.17% on the news that the shareholders of the company had approved a change in the corporate management structure. Market participants saw the establishment of the Public Interest Fund as a lesser of two evils, compared with the Kremlin’s restrictions.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Gazprom	+1.63	255.5	15.362
Lukoil	+0.01	6079.5	14.139
Sberbank	+0.29	244.71	8.059
Norilsk Nickel	-0.1	19776	3.125
Rosneft	0	451.75	2.359

(62.5283 rubles – U.S. $1)

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