Russian stocks grow backed by oil price, restrained by global mood

MOSCOW, Aug 21 (PRIME) -- The Russian stock market edged up on Monday due to higher crude prices, but was restrained by a bearish global mood, analysts said.

The MICEX grew 0.36% to 1,937.66 and the RTS rose 0.63% to 1,034.29.

“It is difficult for the Russian stocks to gain momentum. In early trade they, of course, were pricing in Friday’s oil jump, but later lost enthusiasm. This is because the global markets are showing negative dynamics on concerns about inability of (U.S. President Donald) Trump’s administration to put its tax and infrastructural reforms into effect due to a split,” Forex Club analyst Irina Rogova said.

Sergei Melnikov, chief analyst at Forex broker Global FX, said the a bearish sentiment on the global market is linked with another stage of tensions between the U.S. and North Korea in the wake of 11-day U.S. military exercises.

Rogova said that the Brent oil price fell from a $52.8 resistance line pressured by oversupply wariness. The U.S. companies and Nigeria raise output while an OPEC+ production cut agreement’s implementation is far from ideal so investors worry that a market balance may not be reached in time.

Otkritie Broker analyst Andrei Kochetkov said that metals and mining group Mechel was among the top performers ahead of its IFRS results release for January-June, slated for Wednesday, which is expected to be sound due to high prices for the company’s products, the stock surged 5.69% to 110.45 rubles.

Power companies Territorial Generating Company-1 (TGC-1), Mosenergo and Rosseti also outperformed the market, growing 4.62% to 0.0136 rubles, 3.51% to 2.908 rubles and 3.08% to 0.958 rubles, respectively.

Credit Bank of Moscow added 1.60% to 4.511 rubles after it said its IFRS net profit doubled on the year in January-June.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Otkritie FC Bank	+3.73%	1,556	6.610
Sberbank	+0.24%	169.9	6.238
Gazprom	-0.07%	115.92	1.915
Norilsk Nickel	+1.19%	9005	1.782
ALROSA	-1.9%	78.3	1.128

(59.3612 rubles – U.S. $1)

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