Russian stocks mixed as central bank raises key rate

MOSCOW, Jul 21 (PRIME) -- The Russian stock market ended the main trading on Friday with mixed dynamics amid the central bank’s decision to raise the key rate by 1 percentage point to 8.5% annually, analysts said.

The MOEX Russia Index rose 0.21% to 2,923.54 and the RTS decreased 0.41% to 1,012.37.

“The Russian stock market retreated from the day's lows in the ruble segment and fell deeper in the dollar segment by the end of the main trading on Friday after the central bank's decision failed to support the ruble's correction,” Veles Capital analyst Yelena Kozhukhova said.

According to Freedom Finance Global’s leading analyst Natalya Milchakova, the majority of the investors did not expect such a sharp tightening of monetary conditions by the central bank.

“The high rate is more favorable for keeping savings on deposits and in bonds than for investing in shares. In addition, the regulator is likely not to limit itself to a single rate increase, so the stock market reacted to this event more than restrained,” the analyst said.

Magnit's shares showed the highest growth by the end of the main trading without any significant reasons.

Raspadskaya shares decreased the most on the market on Friday falling 1.28% over correction.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.66	244.3	7.034
Magnit	+3.98	5715	4.555
Lukoil	+1.82	5492	3.096
Norilsk Nickel	+1.11	16080	2.551
Gazprom	+0.99	171.6	2.537

(90.8545 rubles – U.S. $1)

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