Russian stocks rise as oil price holds level of $70 per barrel

MOSCOW, Aug 5 (PRIME) -- The Russian stock market grew on Thursday as the external background sent positive signals to local players, while the oil price managed to hold above U.S. $70 per barrel, analysts said.

The MOEX Russia Index rose 0.61% to 3,833.75 and the RTS increased 0.79% to 1,653.31.

“The MOEX Russia Index tested the level of 3,800 in the first half of the day. The test was a success, and the market switched into growth after that. The oil price calmed down and held the level of U.S. $70 per barrel of the Brent oil even though it dipped below it at some point. The downward correction was cancelled for some time, so national investors tried to feel the momentum for growth in spite of the weakness of Asian markets,” Otkritie Broker’s leading analyst for global research Andrei Kochetkov said.

Veles Capital’s analyst Yelena Kozhukhova said that the Russian stock indices switched into the green zone as they received support from the external background. The mood of European players was positive, and the Euro Stoxx 50 index gained around 0.2% as data for industrial orders in Germany in June outperformed expectations, she said.

“Optimistic mood returned to the world’s stock and commodity exchanges on Thursday, and it was supported by some corporate stories on the Russian market. Risky assets still make attempts to grow, and the report on condition of the U.S. labor market in July could be considered as the key even of the day on Friday,” Kozhukhova said.

The oil market also provided positive momentum for Russian shares as futures for the Brent and the WTI oil blends added about 1.5% due to uncertainty in the Middle East, Kozhukhova said.

Shares of gold producers Petropavlovsk Plc and Polymetal International lost 1.56% to 22.03 rubles and 1.48% to 1,578.40 rubles, respectively. The price of gold decreased to around $1,800 per ounce as investors expressed high appetite for risk, she said.

Kochetkov also said that state telecom company Rostelecom was among the leaders today rising 3.10% to 96.67 rubles as investors were pricing in the financial report of the company. Net profit jumped by 46% on the year to 11.17 billion rubles in April–June, and free-cash flow was at 1.1 billion rubles against am 8.8 billion ruble negative free cash flow in the same period of 2020, he said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Gazprom	-0.10	287.65	12.156
Sberbank	+1.43	315.56	10.883
Norilsk Nickel	+0.09	25470.00	3.401
Lukoil	+0.88	6290.00	3.335
Surgutneftegas	-1.16	33.28	3.095

(72.7857 rubles – U.S. $1)

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