Russian stocks rise as high oil prices support market

MOSCOW, Sep 22 (PRIME) -- The Russian stock market grew on Friday as it received a support from high oil prices, while the bourse was in an oversold state, analysts said.

The MOEX Russia Index rose 0.99% to 3,049.07, and the RTS increased 1.20% to 999.99.

Otkritie Research analyst Andrei Kochetkov said that rising oil prices may stop the fall of the Russian market.

“On the one hand, the stock markets of the U.S., Europe, and Japan show a worsening of the mood of investors, on the other hand, positive economic signals have emerged in China. Oil price is rising one again, and the structure of backwardation in its futures shows a widening deficit of supply,” he said.

The geopolitical background remains the same for Russia, and yet another round of sanction actions of Europe and the U.S. is unlikely to worsen the situation, Kochetkov said.

Yelena Kozhukhova from Veles Capital said that the foreign stock floors consolidated on Friday after a deep dive on Thursday because investors were pricing in the prospects of the leading Western economies maintaining their tough monetary policies.

“The MOEX Russia Index and the RTS Index rolled back from the lowest levels on Friday and attempted to alleviate the oversold state,” Kozhukhova said.

She also said that the shares of steelmakers outperformed the market on Friday without any obvious drivers. Novolipetsk Steel (NLMK) and Severstal gained 3.02% to 205 rubles and 5.00% to 1,332.20 rubles, respectively.

Precious metals producer Polymetal rose by 7.96% to 520.60 rubles because investors were expecting the financial report, which the company is to publish on September 25 and which would make the situation with possible dividends clearer, Kozhukhova said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.78	252.10	9.188
Lukoil	+1.97	6504.50	6.653
Rosneft	+0.39	510.00	5.515
Transneft prefs	+2.31	141850.00	4.361
NLMK	+3.02	205.00	4.042

(96.0762 rubles – U.S. $1)

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