Russian stocks rise as Gazprom propels market upward

MOSCOW, Aug 31 (PRIME) -- The Russian stock market grew on Wednesday as an unexpected recommendation of January–June dividends by the board of directors of gas giant Gazprom boosted the company’s shares that propelled the entire market, analysts said.

The MOEX Russia Index rose 4.05% to 2,400.08 and the RTS increased 3.82% to 1,258.45.

“The Russian market soared on Wednesday because of skyrocketing Gazprom. The other securities that have dividend potential supported the growth. The market activity grew seriously,” Otkritie Research’s leading analyst Andrei Kochetkov said.

Gazprom jumped by 24.95% to 254.90 rubles following a recommendation of the board of directors to pay 51.03 rubles per share in dividends for January–June.

Natalya Pyryeva, analyst at investment company Finam, said that the international market mood was negative as investors were digesting the statements of central banks heads about further worsening of the monetary policies. Inflation in Europe sped up to 9.1% outperforming expectations and setting a new record.

“At the same time, the Russian stock market showed positive momentum connected to an unexpected decision of the board of directors of Gazprom to pay 51.03 rubles per share in dividends for the first half of the year providing a yield of 20%. The other blue chips of the national market supported the dynamics,” Pyryeva said.

Oil major Lukoil gained 3.14% to 4,270 rubles, top bank Sberbank increased by 3.23% to 134,25 rubles, metals giant Norilsk Nickel rose by 3.13% to 16,140 rubles, and diamond mining giant ALROSA added 3.23% to 73.10 rubles, she said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Gazprom	+24.95	254.90	61.123
Sberbank	+3.23	134.25	14.440
Lukoil	+3.14	4270.00	5.466
Novatek	-1.22	1133.00	2.359
Rosneft	+1.85	368.00	1.980

(60.3677 rubles – U.S. $1)

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