Russian stocks increase as oil price exceeds $60/barrel

MOSCOW, Oct 27 (PRIME) -- Russian stocks grew on Friday backed by oil prices exceeding U.S. $60 per barrel for the first time since July 2015 on continuing optimism of investors over a possible extension of the oil production cut agreement, analysts said.

The MICEX rose 1.08% to 2,068.76 and the RTS increased 0.04% to 1,118.62.

“The MICEX started a pullback, as it was expected, and is returning to the level of resistance of 2,065/2,070,” Forex Club analyst Irina Rogova said. “There are several factors that supported the benchmark. The first is the decision of the central bank to lower the key rate by 0.25 percentage points. Of course, this decision was expected, taking into account low inflation, but for the real sector any softening of the monetary policy is a positive factor,” she said.

Readiness of Russia and Saudi Arabia to prolong the oil production cut agreement between OPEC and non-OPEC states was the key factor that supported oil price growth, Rogova said.

The ruble was under pressure, including by the central bank’s decision to cut the key rate, she said.

Metals giant Norilsk Nickel grew 1.03% as global rating agency S&P upgraded the outlook on its corporate credit rating to stable from negative.

Power producer Wholesale Generating Company-2 (WGC-2) added 2.85% on reports that its net profit more than tripled on the year to 7.975 billion rubles in January–September, as calculated under Russian Accounting Standards (RAS).

Steelmaker Novolipetsk Steel (NLMK) rose 0.13% as its net profit soared by 63% on the year to $1.022 billion in January–September, as calculated under International Financial Reporting Standards (IFRS).

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+1.71	196.05	9.095
Gazprom	+1.4	125.94	3.568
Magnit	-3.38	8065.00	3.107
Lukoil	+2.29	3064.50	2.201
Norilsk Nickel	+1.03	10532.00	1.587

(57.7643 rubles – U.S. $1)

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