Russian stocks flat on rising oil prices, new COVID strains

MOSCOW, Jul 13 (PRIME) -- The Russian stock market closed little changed on Tuesday as the effect of growing oil prices was offset by the spread of new COVID-19 strains and wariness ahead of publication of U.S. inflation figures, analysts said.

The MOEX Russia Index rose 0.04% to 3,877.03, and the RTS Index increased 0.53% to 1,648.84.

"The markets are wary ahead of publication of the U.S. inflation statistics. Besides, the European Central Bank hinted at reduction of asset purchases already this autumn," Otkritie Broker analyst Andrei Kochetkov said.

Investment company Olma senior analyst Anton Startsev said that the price for U.S. Treasuries increased significantly last week and the gold prices rose which might indicate a flow of investors into protective assets.

The trend might be caused by the spread of new COVID-19 strains and acceleration of contagion rates in some countries including the U.K., which might threaten the optimistic scenario that the market relies on, he said. 

Kochetkov said that oil grew after the International Energy Agency (IEA) forecasted a 5.4 million barrel demand recovery in 2021 and a 3 million barrel recovery in 2022, and confirmed the June estimate. New strains of the coronavirus remain a threat, the agency said.

The oil market also hopes in the short term that the U.S. reserves will fall for an eighth week in a row, Kochetkov said. Taking into account a forecast by the IEA that the global oil reserves will fall by a 10-year record in July–September, the oil prices can reach a new corridor if the OPEC+ deal remains in place, he said.

According to Kochetkov, the metals and mining sector led supported by ALROSA (+2.94%) ad Magnitogorsk Iron and Steel Works (MMK) (+3%), while the finance sector was the outsider pressured by volatile TCS Group (-5.03%).

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Gazprom	-0.9	294.7	13.067
Norilsk Nickel	+2.45	25728	7.913
Sberbank	-0.85	303.63	6.187
Rosneft	-0.51	576.05	4.327
ALROSA	+2.94	137.03	4.324

(74.6336 – U.S. $1)

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