Russian stocks rise as general background, oil prices improve

MOSCOW, Nov 21 (PRIME) -- Russian stocks grew on Wednesday supported by improving external background and a slight upward rebound in oil prices, analysts said.

The MOEX Russia Index rose 0.70% to 2,357.97 and the RTS increased 0.95% to 1,127.42.

“The external background was moderately positive. The oil prices grew by about 1.5% after yesterday’s slump. The data of the American Petroleum Institution that showed an unexpected decrease in the U.S. oil reserves last week supported the oil market…Trade in Europe also was moderately optimistic,” Yelena Kozhukhova, Veles Broker’s analyst, said.

Andrei Kochetkov, senior analyst at Otkritie Broker, said that the market players hoped for aan oil price rise after the price had reached “the goals of its bearish phase.”

The background was positive as investors were sure that the U.S. stock market would finish the day higher, as it usually does on the eve of Thanksgiving. The European floors were in the green zone as Italian daily La Stampa reported that Italian Deputy Prime Minister Matteo Salvini was ready to start revision of the country’s 2019 budget in line with demands of the European Commission, Kochetkov said.

Vitaly Manzhos, senior risk manager at investment company Algo Captial, said that the Russian market was unable to show stronger results as the oil price was unable to win back at least a half of its Tuesday losses, and the same is true for the U.S. stock indices.

The market shrugged the U.S. decision to impose sanctions on Russian state-run companies Promsyryeimport and Global Vision Group on suspicion of oil supplies to Syria. However, this move shows the will of the U.S. to continue its sanction pressure on Russia using any excuse, Manzhos said.

Kochetkov also said that national flagship carrier Aeroflot was one of the gain leaders of the day, growing 6.46% as a slump of oil prices meant it will have to spend less money on fuel.

He also said that shares of financial group Safmar gained 7.09% as investors are still pricing in a recent announcement of a 6 billion ruble buyback program by the company.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+1.69	197.50	11.449
Lukoil	-0.20	4800.00	3.037
Gazprom	+0.59	152.40	2.368
Aeroflot	+6.46	108.80	2.274
Rosneft	-0.41	411.85	1.860

(65.5871 rubles – U.S. $1)

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