Russian stocks mixed as oil below $51/bbl on OPEC forecasts

MOSCOW, Mar 14 (PRIME) -- Russian stocks closed mixed on Tuesday amid oil prices returning to a decline trend on not very optimistic OPEC forecasts and expectations of the U.S. oil reserve growth, analysts said.

The MICEX gained only 0.06% to 2,001.25 and the RTS decreased 0.51% to 1,063.69.

“Today, the start of trading on the Russian stock market was on the positive territory, but then the situation changed and indices resumed decline after correction a day earlier. The dynamics on the energy market, where the Brent oil price failed to stay above U.S. $51 per barrel, were again a reason for sales,” Finam analyst Bogdan Zvarich said.

Forex Club analyst Irina Rogova said the foreign background remained negative. The U.S. Federal Reserve is expected to announce a hike in its interest rate on Wednesday. Brent oil quotations renewed 3-month lows having fallen to $50.32 per barrel after OPEC raised estimate of 2017 oil output growth by non-OPEC states by 300,000 barrels, while a forecast for growth of demand only by 70,000 barrels was not that optimistic. “All this has certainly revived concerns that reaching a balance (on the oil market) will be lingered,” Rogova said.

The U.S. Energy Ministry will release oil reserves data on Wednesday, and their growth will move the Brent oil price to $50 per barrel, the analyst said.

Oil major Lukoil grew 0.95% despite reporting that its 2016 net profit fell 29% to 206.8 billion rubles, as calculated under International Financial Reporting Standards (IFRS), and dropped 40% to 182.57 billion rubles, as calculated under Russian Accounting Standards (RAS).

Independent gas producer Novatek fell 0.61% after the company’s board of directors recommended paying 7 rubles per share in final dividends for 2016.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.94	157.42	9.426
Gazprom	-0.87	128.80	5.115
Lukoil	+0.95	3080.00	2.149
Rosneft	-0.9	315.40	1.729
FGC UES	+0.76	0.17785	1.304

(59.1327 rubles – U.S. $1)

End