Russian stocks rise as cbank’s key rate cut meets expectations

MOSCOW, Jun 15 (PRIME) -- Russian stocks rose on Monday buoyed by a central bank decision to cut the key rate by 1 percentage point to 11.5% meeting market expectations, but the growth was curbed by downward dynamics of global trading floors, analysts said.

The MICEX rose 0.31% to 1,657.29 and the RTS increased 0.74% to 957.38.

The market welcomed the consistent policy of the central bank, which also supported the ruble, which rebounded to about 54.5 against the U.S. dollar by the end of the trading session, Sergei Filchenkov, analyst at Metropol, said.

The market was also supported by comments of Central Bank Chairwoman Elvira Nabiullina that the ruble volatility is likely to subside naturally, while the market is adjusting to new conditions, according to the analyst.

But the rise of Russian stocks was limited. “The lack of progress in negotiations with Greece and expectations of a Fed (U.S.’ Federal Reserve System) decision put world stock markets under pressure and created a negative background for the Russian market,” Veles Capital said in a research note.

M.Video and Enel Russia rose 3.03% to 200.3 rubles and 0.55% to 0.909 rubles, respectively, in anticipation of dividend payouts, the analyst said.

State-controlled telecom giant Rostelecom, whose shareholders approved paying 9.5 billion rubles in dividends for 2014, up 7% on the year, rose 0.95% to 64.75 rubles per preferred share.

On the back of weak oil prices below $63 per barrel of Brent, oil majors Rosneft fell 0.73% to 243.4 rubles and Lukoil decreased 1.01% to 2,481.70 rubles, while oil company Bashneft fell 0.63% to 1,425 rubles per preferred share.

Below are the MICEX’ five most active stocks on Monday:

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.03	71.80	7.275
VTB	-0.01	0.08039	5.395
Gazprom	-0.31	144.95	4.450
Lukoil	-1.01	2481.70	3.756
Surgutneftegas	+3.13	41.045	2.206

(54.5285 rubles – U.S. $1)

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