Russian stocks grow as central bank raises key rate to 7.5%

MOSCOW, Sep 14 (PRIME) -- The MOEX Russia Index grew slightly on Friday and the RTS index increased more on the back of a decision by the central bank to raise the key rate to 7.5%, analysts said.

The MOEX Russia Index grew 0.12% to 2,360.26, and the RTS index increased 0.94% to 1,094.73.

“The U.S.-dollar RTS index hit a new intraday maximum on a quite unexpected statement that the central bank raised the key rate by 25 basis points to the level of 7.5% annually. The domestic stock market saw a moderate wave of sell-offs for the same reason. The current skew of the MOEX Russia Index does not look threatening so far,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

Manzhos said that the external background remained moderately positive.

Finam analyst Sergei Drozdov said that European markets increased on the possibility of resumption of the U.S.–China trade negotiations.

According to Manzhos, oil and gas sector shares saw a sell-off as the companies seemed to be overheated in the medium-term. Further growth could happen if the Brent oil price breaks a U.S. $80 resistance.

Aeroflot lost 1.26% due to high jet fuel prices and the possibility of U.S. sanctions against the company, Manzhos said.

Sberbank recovered after large-scale sales, he said.

Magnit increased 2.29% after launching a buyback program, the analyst said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+2.84	188.71	23.811
Gazprom	-0.88	152.15	2.164
Lukoil	-1.18	4604	2.045
Sberbank pref	+2.87	159.5	1.418
ALROSA	+0.27	105	1.118

(68.6370 rubles – U.S. $1)

End