Russian stocks rise as global economy remains optimistic

MOSCOW, Aug 23 (PRIME) – The Russian stock market closed higher on Monday, rising amid increasing oil prices and U.S. futures, as well as the mainly optimistic U.S., European markets, analysts said.

The MOEX Russia Index rose by 1.31% to 3,883.01 and the RTS increased by 1.63% to 1,649.94.

“The market opened on an optimistic note on Monday. Optimism returned on Friday on a statement by the U.S. Fed’s Robert Kaplan, the most ardent proponent of the soonest toughening of the monetary policy. He said that the worsening pandemic could have hurt the economic outlook, changing his views on the pace of monetary stimulus tapering. Earlier, super-soft monetary conditions served as the main driver of the rally on the global markets,” Dmitry Babin, stock market expert at BCS World Investment, said.

Artemy Shamshukov, analyst at FINAM, said that the key global indices rose, the risk-on mood prevailed. Zero growth of COVID-19 cases in China, according to the local authorities, is an important growth factor. Against this backdrop, November Brent crude oil futures increase,”

“It seems that the ruble is in no hurry to build on its success, despite acceleration of oil growth and the continued optimistic sentiment on the global markets. It is likely that many investors are skeptical about current growth, as uncertainty about the pandemic and further dynamics of inflation in major economies persists, questioning the preservation of super-soft monetary conditions,” Babin noted.

“The Russian market received good support from the positive external background today. The current situation can be briefly interpreted as follows: investors do not believe that the global central banks will leave the economy without stimulus amid the pace of the delta strain,” Mikhail Shulgin, head of global research at Otkritie Broker, said, adding to the optimistic mood.

Veles’ analyst Elena Kozhukhova said that Mechel jumped on the news about planned spending of 1 billion rubles on environmental modernization of the Moscow Coke and Gas Plant in 2021-2025. RUSAL's quotations grew in correction on the back of higher aluminum prices. The ncrease in oil and metal prices generally supported the securities of many commodity and metallurgical companies, Kozhukhova said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Gazprom	+1.71	297.58	10.849
Sberbank	+1.01	328.95	6.441
Lukoil	+2.04	6,469.5	4.607
Norilsk Nickel	+1.15	23,820	3.972
Mechel	+14.79	96.14	2.405

(74.3640 – U.S. $1)

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