Russian stocks increase as Brent price surges over $36/bbl

MOSCOW, Feb 26 (PRIME) -- Russian stocks increased on Friday, as Brent crude oil price surged on the back of investors’ optimism and positive U.S. statistics, and the ruble followed the lead, analysts said.

The MICEX rose 0.71% to 1.816.73 and the RTS increased 1.60% to 757.45.

“It should be noted that April futures for Brent oil price rose to a new monthly maximum, exceeding U.S. $36 per barrel,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

Sofya Kirsanova, an analyst at Raiffeisen Capital said, “Investors nonetheless believe that oil producing countries will find a compromise regarding volumes of oil production in mid-March in spite of controversial rhetoric from Iran and Saudi Arabia.”

Brent price was likely also supported by positive U.S. trade and labor statistics, the analyst said, adding that increasing oil pushed the Russian ruble higher.

The rise of the dollar-denominated RTS was technically sped up by the ruble growth.

Andrei Dirgin, head of the analytical department at Alfa-Forex, said, “The Russian stock market was backed by rising global stocks, and the ruble-denominated MICEX hit 1,825, a record high since 2015.”

Veles Capital analyst Alexander Kostyukov said that global stocks rose on Chinese central bank’s statements concerning stimulation measures and monetary policy, and the news that the U.S. economic growth for September–December 2015 was revised to 1% from 0.7%.

Top Russian lender Sberbank rose 2.10% to 106.24 rubles, backed by the national currency, Manzhos said.

Uncut diamond mining giant ALROSA fell 1.59% to 69.40 rubles after Deputy Finance Minister Alexei Moiseyev said that the Russian government may sell significantly less than 19% in the company.

Novolipetsk Steel (NLMK) went down 1.59% to 73 rubles and another steel exporter Severstal decreased 0.80% to 635 rubles on the back of the ruble rise, also depressed by the market expectations that the E.U. may extend anti-dumping duties on companies’ cold rolled steel, Kirsanova said.

Gold producer Polyus Gold jumped 8% to 3,884 rubles on reports that its net profit soared to 3.23 billion rubles in 2015 from 1.247 billion rubles in 2014, as calculated under Russian Accounting Standards (RAS).

Oil major Lukoil increased 1.39% to 2,587 rubles after the company said it had started geological exploration of the Vostochno-Taimyrsky oil and gas block, InstaForex Igor Kovalyov said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+2.10	106.24	15.295
Gazprom	+0.51	138.67	4.557
Lukoil	+1.39	2587.00	3.253
Norilsk Nickel	+2.11	8935.00	2.465
Magnit	+0.56	10589.00	1.811

(76.3929 rubles – U.S. $1)

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