Russian stocks rise as oil price hits one-year high

MOSCOW, Oct 10 (PRIME) -- Russian stocks grew on Monday as the Brent oil price jumped to a new one-year high, analysts said.

The MICEX rose 1.06% to 2,001.10 and the RTS increased 1.58%% to 1,017.88.

The key factor here were statements by the Saudi Arabian oil minister that an agreement to restrict oil production may be reached in November. In general, it opens possibilities for a further growth of the Brent oil prices to the level of $55 per barrel,” Irina Rogova, an analyst at Forex Club group of companies, said.

Vitally Manzhos, a senior analyst at Bank Obrazovanie, said that the Russian stock market rose supported by a significant improvement of the external background following a noticeable increase of the European stocks as well as a surge in oil prices.

Oil major Rosneft rose 5.71% to 361 rubles after Prime Minister Dmitry Medvedev signed a ruling to sell the state’s 50.075% interest in Bashneft for 329.7 billion rubles to Rosneft, Manzhos said.

Fertilizer producer Uralkali lost 4.33% to 166.80 rubles as investors still reacted to an October 7 decree by President Vladimir Putin to check the company’s operation in shafts. Many man-caused landslides have happened in the Perm Region due to production of potassium, and it is possible that authorities may impose large fines on the company, Manzhos said.

Ilya Frolov, head of the stock market analysis department at Promsvyazbank, said that shares of power producer Inter RAO fell 2.74% to 3.268 rubles after Investment fund United Capital Partners sold its 8.7% stake in the company to a consortium of investors, including pension funds, prior to inclusion of the shares into the MSCI Russia Index in November.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+1.70	151.27	5.631
Gazprom	+2.20	139.10	4.743
Rosneft	+5.71	361.00	2.390
Inter RAO	-2.74	3.268	1.853
ALROSA	-2.92	91.55	1.337

(62.3031 rubles – U.S. $1)

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