Russian stocks mixed over ruble’s increase, oil price growth

MOSCOW, Jul 10 (PRIME) -- The Russian stocks closed mixed on Wednesday as a strong ruble supported the RTS Index, while the general background was positive on U.S. Federal Reserve System’s promise to cut the rates soon, analysts said.

The MOEX Russia Index remained flat at 2,822.75 and the RTS increased 0.92% to 1,407.64.

“The global indices were inspired in the second half of the day by the news coming from the Western floors. The administration of the U.S. president announced a significant softening of sanctions against Huawei, but the most important piece of positive news came with the comment of (Federal Reserve System’s Chairman) Jerome Powell who confirmed readiness to reduce the rates,” Iven Markov, senior analyst at investment company Ivolga Capital, said.

The Russian stock market switched into the green zone during the day as such a positive news flow provides significant support to risky assets, Markov said.

Yelena Kozhukhova, analyst at Veles Capital, said that the Russian stock indices were mainly driven by a strengthening ruble, and the RTS Index outperformed the MOEX Russia Index.

“At the same time, the Russian market was again supported by the oil price, which grew…today following the release of data of the American Petroleum Institute showing a record contraction of reserves by 8.1 million barrels. This has been the fourth contraction in a row, and the commodity market is now sure that the market is balanced, and can start thinking about an upcoming deficit,” Sofya Kirsanova, senior analyst at managing company Raiffeisen Capital, said.

The Brent oil price grew 2.685% to U.S. $65.93 per barrel as of 5.04 p.m. Moscow time, according to the ICE exchange.

Kozhukhova also said that precious metals producer Polymetal International fell XX% to XX rubles after PFF Group sold 21 million shares in the company, or an around 4.5% stake, for 9.66 British pounds per paper.

Shares of national flagship carrier Aeroflot were the growth leader adding XX% to XX rubles in correction after a recent slump, Kozhukhova added.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.42	243.76	10.144
Gazprom	+0.02	250.21	8.263
VTB	+1.85	0.04393	3.725
Lukoil	-0.17	5365.00	3.343
ALROSA	-1.59	84.63	2.260

(63.7660 rubles – U.S. $1)

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