Russian stocks hit year lows on profit taking ahead of holiday

MOSCOW, Mar 7 (PRIME) -- Investors took profits on the Russian stock market on Tuesday ahead of a public holiday and drove the benchmarks towards this year’s lows amid a negative external background, analysts said.

The MICEX dropped by 1.10% to 2,024.84 and the RTS fell by 1.17% to 1,097.44.

“After yesterday’s modest attempts of a bounce back, leading Russian stock indices returned to a decline on negative external background and a weak growth of oil prices,” said Stanislav Soldatov, chief analysts at International Financial Center.

“There will be no trading in Russia tomorrow because of a holiday, this is why market players decided to take profits sending the ruble benchmark to this year’s lows.”

Russian markets will be closed on Wednesday to celebrate the International Women’s Day.

“The market keeps liquidating the consequences of the (U.S. President Donald) Trump rally and also of disappointment with the lack of decisions on higher dividends from state-run companies,” Otkritie Broker analyst Andrei Kochetkov said.

The country’s biggest lender Sberbank declined by 0.63% to 160.98 rubles as the market was disappointed by its February results.

Metals exporters were among the worst losers of the day pressured by strengthening ruble. Magnitogorsk Iron and Steel Works (MMK) sagged by 5.44% to 34.78 rubles, aluminum giant UC RUSAL fell by 3.7% to 28.65 rubles, mining and metallurgic company Norilsk Nickel shrank by 2.82% to 9,061 rubles and steelmaker Severstal dropped by 3.01% to 798.3 rubles.

“The bearish correction on the Russian market has obviously been lasting for too long, while short-term attempts at return to growth look weak and unimpressive,” Soldatov said.

“The benchmarks lack both internal drivers and support from the foreign background, where the presence of political risks can be felt both in Europe and in the U.S. Besides risky assets are pressured by the uncertainty ahead of an upcoming ECB meeting on Thursday and expectations of a rate hike by the Fed next week.”

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.63%	160.98	7.207
Gazprom	-1.27%	132.89	3.853
Norilsk Nickel	-2.82%	9,061.00	3.096
Lukoil	-0.28%	3,070.00	2.079
Rosneft	-0.87%	329.10	1.925

(58.3370 rubles – U.S. $1)

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