Russian stocks grow on high oil, warming relations with Turkey

MOSCOW, Jun 29 (PRIME) -- Russian stocks increased on Wednesday backed by recovering oil prices and signs of warming relations between Moscow and Ankara, analysts said.

The MICEX rose 1.66% to 1,888.15 and the RTS increased 2.87% to 931.35.

“The Russian stock market continued upward correction that started yesterday,” InstaForex analyst Igor Kovalyov said.

“During a two-day rebound the MICEX and the RTS already managed to win back around a half of recent losses connected with results of a referendum on the U.K. leaving the E.U.,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

Turkish President Recep Tayyip Erdogan’s apologies to Russian President Vladimir Putin over the downed plane and a phone conversation between the leaders brought additional optimism to the stock market, Raiffeisen Capital analyst Sofya Kirsanova said.

The Brent oil price increased by 1.4% on reports that the U.S. oil output fell by 29 million barrels a day and oil reserves decreased by 4 million barrels, Kirsanova said.

Higher oil prices supported shares of the oil and gas sector, Otkritie Broker analyst Andrei Kochetkov said. Gas giant Gazprom grew 0.55%, oil major Rosneft rose 1.38%, oil major Lukoil increased 1.52%, and oil and gas company Surgutneftegas closed 1.05% higher.

Metals companies continued growth on reports about a projected output decline in China, the analyst said. Magnitogorsk Iron and Steel Works (MMK) closed 4.21% higher, steel producer Severstal grew 2.21%, and Novolipetsk Steel (NLMK) rose 0.92%.

Shares of food retailers were supported by signs of warming relations between Russia and Turkey, with Magnit jumping by 4.82%, Kirsanova said.

Car producer Sollers grew 0.70% after its shareholders approved paying no dividends for 2015.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+3.33	133.88	8.883
Gazprom	+0.55	140.00	2.402
Magnit	+4.82	8700.00	1.522
Norilsk Nickel	+0.06	8485.00	1.471
Lukoil	+1.52	2668.00	1.367

(64.8095 rubles – U.S. $1)

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