Russian stocks mixed as US stock market falls, oil price grows

MOSCOW, Dec 5 (PRIME) -- Russian stocks closed mixed on Wednesday as Tuesday’s contraction of the U.S. stock indices soured investor mood, but rising oil prices outweighed the U.S. market slump that was combined with other local risks of possible new sanctions and geopolitical tensions, analysts said.

The MOEX Russia Index rose 0.09% to 2,445.55 and the RTS decreased 0.25% to 1,153.00.

“The MOEX Russia Index started Wednesday with a downward gap on the background of a fall in the U.S. due to rising risks of worsening of the U.S.–China trade war…During the trade session, the Russian market regained its positions thanks to growing oil prices,” investment company Veles Capital said in a research note.

“The U.S. stock market experienced another slump yesterday. The DJIA ant S&P 500 lost more than 3%, and the high-tech bourse NASDAQ fell by 3.8%...The Russian stock indices reacted strongly to yesterday’s contraction in the U.S.,” Vasily Olienik, investment company Finam’s expert, said.

Anastasia Sosnova, investment company Freedom Finance’s analyst, said that investors were also worried by the dangerous closeness of the yield on 2-year and 10-year U.S. treasuries, which signals a possible and soon ending of the current economic cycle in the U.S.

“The national market was under pressure again. Yesterday’s plunge of the U.S. indices and its own problems had an impact today. The U.S. issued an ultimatum over the Intermediate-Range Nuclear Forces Treaty, Sberbank CEO German Gref didn’t rule out restrictions on two large Russian banks next year, and the situation in the Kerch Strait still echoes in low demand for the national assets,” Andrei Kochetkov, senior analyst at Otkritie Broker, said.

State power grid holding Rosseti outperformed the market and gained 1.08%, even though the company announced a possible secondary public offering of up to 100 billion rubles of shares. On the one hand, it dilutes ownership of current owners, but on the other hand, it does not expand the company’s debt, Kochetkov said.

Ivan Marchena, Forex Club group of companies’ analyst, said that Novorossiysk Grain Plant grew 0.41% as the company’s shareholder approved paying 17.75 per share in dividends for January–September.

Below are the MOEX Russia Index’ five most active stocks on Wednesday:

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.51	196.00	9.734
Lukoil	+0.98	5260.00	4.906
Gazprom	+0.23	164.57	3.795
Norilsk Nickel	+1.22	12820.00	1.815
Tatneft	+0.96	778.70	1.358

(66.4467 rubles – U.S. $1)

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