Russian stocks flat on oil price increase, China–US tensions

MOSCOW, Aug 4 (PRIME) -- The Russian stock market closed with marginal changes on Tuesday as a positive effect of oil price rise was offset by growing tensions between the U.S. and China, analysts said.

The MOEX Russia Index grew 0.36% to 2,940.46, and the RTS Index increased 0.22% to 1,260.16.

"The indices of Moscow Exchange and the RTS changed insignificantly at the end of the trade due to ambivalent moods abroad," Yury Kravchenko, Director of investment company Veles Capital’s department, said.

Oil prices were falling during the day. According to Andrei Kochetkov, Otkritie Broker’s lead analyst for global research, the plan of OPEC plus participants to raise production from August by 2 million barrels per day might be excessive in the context of a modest recovery of demand. The U.S. registered an oil product growth, all these factors pushed the Brent to the level of U.S. $43.4 in the middle of the day.

But at the end of the day, Brent and WTI recovered and grew by 0.5–1.0% as a report by the U.S. Energy Department to be issued on Wednesday is expected to demonstrate a reserve decrease by 3.26 million barrels over the last week, Kravchenko said.

The World Health Organization (WHO) issued a report saying that no "silver bullet" against the COVID-19 might be invented, which means a constant threat of the return of pandemic. Manila and Melbourne took additional restriction measures, and head of the Federal Reserve System (Fed) of Minneapolis Neel Kashkari offered to introduce a severe lockdown for four to six weeks, all this information pressurized markets worldwide, Kochetkov said.  

According to Kravchenko, the tensions between the U.S. and China strengthened as Microsoft announced a plan to buy a stake in TikTok. But the U.S. Congress is about to restart discussions of economic aid, which was a positive factor.

Kochetkov said that metals companies grew on expectations for increase of demand in the construction sector, while gold producers were among the outsiders. 

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.03	226.66	9.228
Gazprom	-0.33	183	5.652
Norilsk Nickel	+1.81	20380	5.078
Lukoil	-0.44	5015	3.627
Polyus	+0.33	16905	2.549

(74.1586 – U.S. $1)

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