Russian stocks rise as buyers switch to emerging markets

MOSCOW, Dec 7 (PRIME) – The Russian stocks grew on Monday together with the markets of other emerging states, where demand from the markets of developed states switched, analysts said.

The MOEX Russia Index rose 0.33% to 3,195.08 and the RTS increased 0.85% to 1,368.86.

“Progressive growth of the Russian stock market slowed down at the beginning of Monday due to a budding contraction on the U.S. stock market,” Anton Zatolokin, head of the stock market analysis department of Otkritie Broker, said.

“However, soon after that buyers switched the bulk of shares to growth. The European stock indices of developed states fell, but the indices of developing states showed positive dynamics, and the Russian market was no exception.”

Freedom Finance analyst Valery Yemelyanov said that the MSCI Emerging Markets index also grew to record highs over the past several years reflecting high demand of international funds in assets outside the Western markets.

Veles Capital analyst Yelena Kozhukhova said that there was profit taking on the Western bourses due to the lack of new positive drivers, not a serious worsening of the market mood.

“Both Russian indices are yet to lose their growth momentum,” and the RTS Index outperformed the MOEX Russia Index mainly due to the ruble dynamics, Kozhukhova said.

Zatolokin also said that ordinary and preferred shares of top bank Sberbank gained 2.15% to 275.80 rubles and 1.29% to 248.66 rubles, respectively. The bank’s net profit fell by 11.7% on the year to 719.1 billion rubles in January–November. However, investors expect serious dividends to be paid per ordinary and preferred share for this year, he said.

Kozhukhova also said that gold prices unexpectedly switched to serious growth at the end of the day and climbed above the mid-term resistance level of U.S. $1,850 per ounce, which is a favorable signal for gold producers. Polyus grew by 2.86% to 14,771 rubles.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+2.15	275.80	23.769
Gazprom	+1.44	191.50	9.574
Lukoil	-1.17	5062.00	5.393
Polyus	+2.86	14771.00	5.095
Norilsk Nickel	-0.15	23154.00	3.971

(74.2529 rubles – U.S. $1)

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