Russian stocks increase despite weak ruble, low oil prices

MOSCOW, Aug 31 (PRIME) -- Russian stocks unexpectedly closed higher on Monday after trading in the red zone almost the entire day amid negative foreign background, reducing oil prices, and a weaker ruble, analysts said.

The MICEX rose 0.81% to 1,733.17 and the RTS increased 0.44% to 833.60.

During the trading day, “the dollar-denominated RTS was sinking a lot being under pressure by the ruble’s morning depreciation against the U.S. dollar,” Vitaly Manzhos, senior analyst at Bank Obrazovanie, said. Despite lowering oil prices, the weakening ruble was providing some support to the MICEX index, the analyst said.

Brent price was falling on Monday on fears about the Chinese economy and expectations of the interest rate hike by the U.S. Federal Reserve and resumed growth only after the closing bell in Moscow.

Amid the ruble’s depreciation, investors paid more attention to shares of exporters, including Magnitogorsk Iron and Steel Works (MMK), which gained almost 6%; steelmaker Severstal, which increased 4.6%; and steelmaker Novolipetsk Steel (NLMK), which grew 2.57%, Manzhos said.

Debt-ridden metals and mining group Mechel closed 6.21% higher after saying it had signed debt restructuring agreements with Gazprombank, one of its main creditors.

Oil major Rosneft fell 0.51% after reporting that its net profit decreased 26.1% on the year to 190 billion rubles in January–June, as calculated under International Financial Reporting Standards (IFRS).

Metals giant Norilsk Nickel increased 1.3% on reports that its IFRS net profit grew 3% on the year to U.S. $1.493 billion in January–June.

National flag carrier Aeroflot gained 2.46% despite reporting that its IFRS net loss widened 85.9% on the year to 3.541 billion rubles in January–June.

Fertilizer producer Acron closed 4% higher on reports that its IFRS net profit jumped by 84% on the year to 12.063 billion rubles in January–June.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.43	74.50	11.294
Gazprom	+1.08	148.19	4.228
Lukoil	+0.44	2531.00	2.609
Norilsk Nickel	+1.33	10569.00	1.696
Severstal	+4.60	725.20	1.312

(66.4779 rubles – U.S. $1)

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