Russian stocks mixed on ruble strengthening, unfavorable backdrop

MOSCOW, Aug 16 (PRIME) -- The Russian stock market closed with mixed dynamics on Wednesday on the ruble strengthening, as well as unfavorable background, analysts said.

The MOEX Russia Index fell 2.11% to 3,049.46 and the RTS increased 0.44% to 1,014.61.

“The Russian stock market on Wednesday by the end of the main trading after another volatile day did not show unified dynamics, largely focused on the ruble,” Veles Capital analyst Yelena Kozhukhova said.

Buying of the ruble accelerated in the evening, when the media reported on the Finance Ministry's proposals on currency control, the analyst said.

The measures may include obligations to sell up to 80% of foreign currency earnings, a ban on dividend payments abroad, abolition of import subsidies, limitation of currency swap transactions and reduction of the volume of foreign currency that exporters can withdraw from Russia, she added.

“The decline in the stock market was due to the key rate increase by the central bank the previous day, as well as against the background of weak dynamics on global markets,” Vladimir Lyashchuk, senior analyst at Promsvyazbank, said.

The increase of the key rate will strengthen the local liquidity flow from shares to bonds, the yields on which have grown, the analyst added.

According to Senior Trader at managing company Alfa-Capital Vladislav Silayev, the ruble indicator was declining under the pressure of strengthening of the ruble rate.

“The topic of exchange rate fluctuations is still one of the main ones on the stock market,” the analyst said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.46	256.61	16.019
Lukoil	-0.61	6094	11.024
Gazprom	-1.33	173.82	7.977
Surgutneftegas	-2.23	47.77	6.012
VTB Bank	-2.04	0.02664	5.459

(97.4217 rubles – U.S. $1)

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