Russian stocks recover after oil prices correct upwards

MOSCOW, Mar 19 (PRIME) -- The Russian stock market increased on Thursday correcting after earlier losses as the oil prices started to recover after record lows for almost two decades, analysts said.

The MOEX Russia Index grew by 7.72% to 2,257.70, and the RTS index increased by 8.46% to 902.63.

"Modest optimism is returning to the markets after an unpleasant Wednesday. The European Central Bank (ECB) announced a 750 billion euro bond purchase program to help the European economy during the coronavirus crisis. Oil has seemingly found some support after yesterday’s nosedive," Andrei Kochetkov, senior analyst at Otkritie Broker, said.

Reports about a request by U.S. senators to Saudi Arabia not to raise production in April also boosted oil prices, he said.

Valery Yemelyanov, analyst at investment company Freedom Finance, said that oil recovery was the driver of the rally on the Russian stock market. The oil prices rose by 7% to U.S. $27.3, still below a record low of 2016 and comparable with the lows of 17 years ago leaving room for further decline.

As a result, the RTS increased by 5%, but has not yet fully priced in oil recovery. This was the largest index growth since the start of the coronavirus outbreak, which gives reasons for cautious optimism, he said.

The Moscow Exchange index also increased, fully compensating Wednesday’s drop, Yemelyanov said.

Dmitry Bedenkov, head of the research department of investment company Russ-Invest, said that oil companies led the Russian market. Besides, X5 Retail Group firmed 2.09% after publishing a solid 2019 financial report, and the board of directors recommended 2019 dividends of 110.47 rubles per global depositary receipt.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+8.75	189.51	34.507
Gazprom	+4.94	174.56	21.031
Lukoil	+15.42	4333	19.395
Norilsk Nickel	+4.85	16252	12.315
Rosneft	+12.99	264.4	9.510

(77.2131 – U.S. $1)

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