MOSCOW, Jul 22 (PRIME) -- The Russian stock market increased after the central bank reduced the key rate by dramatic 1.5 percentage points to 8%, and the ruble weakened, analysts said on Friday.
The MOEX Russia Index grew by 2.10% to 2,096.75, and the RTS index increased by 1.69% to 1,161.47.
"The central bank reduced the key rate more strongly that the bulk of experts forecast. A confident decline of inflation and inflation expectations, as well as the need to stimulate the economy, since it takes time to compensate the decline of business activities, have become the reason for the dramatic easing of the monetary policy," Georgy Vashchenko, head of investment company Freedom Finance’s department for trade operations on the Russian stock market said.
The market reacted with a surge, and almost all blue chips of the MOEX Russia Index rose. The financial sector is expected to benefit most from the decision on speculative purchases, while the ferrous metals sector may see an upward correction, the analyst said.
Otkritie Research leading analyst Andrei Kochetkov said that the U.S. dollar-denominated RTS index was volatile during the day on the back of a decrease of the ruble and the central bank's move.
VSMPO-Avisma increased 1.98%, after the E.U. decided not to punish the Russian titanium producer, Kochetkov said.
Gazprom rose after presidential spokesman Dmitry Peskov denied reports that Russia is to blame for the delay in return of the Siemens turbine after repairs.
Novatek grew 3.06% as the E.U. abstained from sanctions against the company, whose exports are booked for years ahead, including to Europe, the analyst said.
The metals and mining sector underperformed, dragged down by the gold securities, he said.
Below are the MOEX Russia Index’ five most active stocks on Friday:
| Company | Change, % | Last price, rbl | Trading volume, bln rbl |
|---|---|---|---|
| Sberbank | +2.66 | 128.82 | 5.934 |
| Gazprom | +1.4 | 192.25 | 3.420 |
| Lukoil | +4.2 | 3688 | 2.085 |
| Rosneft | +3.6 | 340 | 1.325 |
| Norilsk Nickel | -0.47 | 14730 | 1.287 |
(56.4783 rubles – U.S. $1)
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