Russian stocks mixed on Lukoil rally, weakening ruble

MOSCOW, Oct 1 (PRIME) – Rallying Lukoil stocks and a robust growth of exporters as the ruble weakened pushed the MOEX Russia Index higher on Tuesday, while the RTS index eased, analysts said.

The MOEX Russia Index grew 0.42% to 2,758.83, and the RTS Index fell 0.34% to 1,329.37.

“The Russian stock market welcomed the start of October and the fourth quarter with an increase without noticeable growth drivers,” Sofya Kirsanova, portfolio manager at investment company Raiffeisen Capital, said. “Growth of the domestic market has been mainly caused by a rally in shares of Lukoil, which accounts for about 14% in the MOEX Russia Index and contributed 0.5% to the benchmark rise.”

Lukoil grew on an announcement of a second, U.S. $3 billion share buyback, which will be valid until the end of 2022. A previous $3 billion buyback program was launched on September 2018 for three years, but was completed in a year, Kirsanova said.

Otkritie Broker analyst Andrei Kochetkov said that the exporters were supported by a weakening ruble, with Surgutneftegas and Tatneft, rising 1.68% and 1.09% respectively, becoming the gain leaders.

He said that strengthening of the U.S. dollar made precious metals producers, in particular, Polymetal the least attractive shares of the day, as it fell 0.3%.

The market was hurt by the release of Russia’s Manufacturing purchasing managers’ index, which fell to 46.3 in September from 49.1 in August, the biggest decline since August 2009, Kochetkov said.

Kirsanova said that a slowdown of inflation in the euro zone to 0.9% in September from 1% in August, and rumors about possible delisting of Chinese companies from the American trading floors, made the background for the Russian trading session shaky.

She also said that forthcoming speeches by U.S. Federal Reserve System (Fed) Chairman Jerome Powell and heads of the regional offices, and a new round of the U.S.–China negotiations, as well as a start of a new reporting season next week could possibly trigger a positive trend on markets.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Lukoil	+2.65	5530	9.438
Sberbank	-0.54	226.49	6.812
Gazprom	+0.26	226.49	3.797
Norilsk Nickel	+0.2	16720	2.526
Surgutneftegas	+1.68	35.995	2.255

(64.6407 rubles – U.S. $1)

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