Russian stocks grow on rising oil prices, stronger ruble

MOSCOW, Aug 25 (PRIME) -- Russian stocks increased on Thursday supported by rising oil prices and a stronger ruble, analysts said.

The MICEX rose 0.10% to 1,985.56 and the RTS increased 0.86% to 966.29.

The oil market was quite volatile on Thursday, with oil prices falling almost the entire day and resuming growth only in the evening after Iran confirmed its participation in an OPEC meeting in September, Vasily Tanurkov, deputy head of the stock market research department at investment company Veles Capital, said.

“Oil is making attempts to restore positions. Brent oil quotations reached U.S. $49.88 per barrel at some point. Such dynamics are mostly caused by technical factors,” Forex Club analyst Irina Rogova said.

“Nevertheless, it is too early to say that Brent quotations will manage to strongly consolidate above $50 per barrel,” Rogova said.

The Russian ruble grew on the back of stabilized oil prices and supported the dollar-denominated RTS index, analysts said.

Oil and gas companies were among outsiders on Thursday on reports that the Finance Ministry plans to increase a tax burden on the industry next year, Promsvyazbank analyst Yevgeny Lokhtyukhov said. Oil and gas company Surgutneftegas’ preferred shares dropped 3.83% and common shares fell 2.43%, gas giant Gazprom decreased 1.15%.

National top lender Sberbank grew 2.39% on reports that its net profit jumped to 263.1 billion rubles in January–June from 85.2 billion rubles in the same period of 2015, as calculated under International Financial Reporting Standards (IFRS).

Russia’s second largest lender VTB rose 0.45% after reporting that its IFRS net profit grew 14.3% on the year to 2.4 billion rubles in July.

Aluminum giant UC RUSAL fell 1.94% as its IFRS net profit plunged 70.3% on the year to $261 million in January–June.

Pharmaceutical company Protek, whose IFRS net profit decreased 47.4% on the year to 2.492 billion rubles in January–June, closed 2.32% lower.

Power utility Mosenergo rose 0.37% on reports that its IFRS net profit grew 21.8% on the year to 10 billion rubles in January–June.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+2.39	142.84	10.720
Surgutneftegas pref	-3.83	31.16	3.070
Gazprom	-1.15	135.42	2.841
Lukoil	+0.46	3049.00	1.749
RusHydro	+5.27	0.76	1.524

(64.8140 rubles – U.S. $1)

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