Russian stocks rise as president promises no policy surprises

MOSCOW, Feb 21 (PRIME) -- The Russian stock market increased on Tuesday after investors saw no signs of unexpected policy changes in a presidential address to the Federation Council, analysts said.

The MOEX Russia Index grew 1.32% to 2,212.42, and the RTS index increased 0.81% to 928.98.

"The Russian market grew significantly in the first half of the day on Tuesday. The presidential address to the Federation Council brought about no surprises in terms of changes in the national policies. The foreign agenda remained the same. Activity was extremely high," Otkritie Research leading analyst for global research Andrei Kochetkov said.

He said that the market ignored a predominantly negative trend in Europe and continuation of an oil price fall on the back of the U.S. dollar's strengthening and a bond yield rise. Promsvyazbank senior analyst Yegor Zhilnikov said that the external background for the Russian session was stable.

According to Kochetkov, Sberbank increased on statement by CEO German Gref about the possibility of a dividend payment for 2022 although it was expected after the Finance Ministry said it waited for dividends from banks.

Zhilnikov said that TCS Group shares started to recover growing 1.55% after a lengthy decline.

Oil and gas securities underperformed, as investors saw the promised support measures as insignificant, Zhilnikov said.

Polyus was weaker than the market after reporting a 6% gold production decline in 2022, Kochetkov said. According to Zhilnikov, the result was neutral, while the 2023 output guidance of 2.3–2.9 million ounces, taken on expectation of high gold prices, if met, would ensure a better financial performance.

Zhilnikov said that ferrous metals producers outperformed the market because of a steel price increase.

Construction companies gained after the president suggested launching a beneficial housing rent program for the defense servants. "Any real estate initiative raises interest to the shares of construction companies in fact," Kochetkov said.

The IT companies benefited from a statement that they could pay a smaller profit tax, Zhilnikov said.

Sovcomflot (+1.05%) and the sea ports grew after the president pledged development of the ports on the Black and Azov seas, the Northern Sea Route, the Trans-Siberian Railway and the Amur-Baikal Mainline, Kochetkov said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+2.44	164	19.901
Polyus	+0.68	8983	5.319
Gazprom	+0.92	154.65	3.061
Polymetal	+4.66	491.9	1.786
Sberbank pref	+3.04	162.5	1.612

(74.0432 rubles – U.S. $1)

End