Russian stocks rise as tensions with Ukraine ease

MOSCOW, Aug 18 (PRIME) -- Russian stocks firmed on Monday as the country’s tensions in relations with Kiev eased, negative correction is possible, analyst said.

The MICEX rose 0.52% to 1,425.18 and RTS increased 0.91% to 1,243.56.

“The only thing playing into buyers’ hands is a smaller supposed Russia’s role in the Ukrainian civil war. In particular, Russian humanitarian aid was acknowledged by the Ukrainian side as a humanitarian aid,” Ivan Kopeikin, analyst at BCS Express said.

Previously the Ukrainian government refused to receive humanitarian aid from Russia and agreed to take it after the International Committee of the Red Cross stepped in.

Also, on August 17, Russian, Ukrainian, French and German foreign ministers met in Berlin to discuss the geopolitical crisis, and on Monday the Russian ministry said a definite success was achieved during the talks, and the countries will continue the talks in a quadrilateral format.

But Kopeikin said that falling oil prices and poor E.U. statistics may push the market down.

The Brent oil price slid 1.82% to U.S. $101.65 per barrel during the day on increasing supplies from Libya and a smaller risk that supplies from Iraq can fall.

The E.U. has said its trade balance fell to 13.8 billion euros in June from 15.3 billion euros, worse than expected, and in April-June the GDP remained flat on the quarter.

“There are no fundamental reasons for growth as the main driver was the speech President Vladimir Putin made in Crimea’s Yalta city last week. Interestingly, the amount of trade is low,” said head of Absolut Bank’s trust management department Ivan Fomenko.

On August 14, Putin said that Moscow will do its best to quell the conflict in the east of Ukraine.

Gas giant Gazprom looked a bit stronger than the market, gaining 1.22% to 134.29 rubles as the Ukrainian threat to ban gas transit through the country has received no further development.

Retailers Dixy Group and Magnit grew 1.61% to 423.71 rubles and 1.90% to 9,565 rubles respectively as investors are switching to locally oriented companies on the back of worsening situation at the oil market. In addition, both companies’ reported on high growing revenues in July and January-July.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.13	75.15	6.572
Gazprom	+1.22	134.29	3.819
Sberbank Preferred shares	-0.51	56.80	0.893
Lukoil	+1.59	2043.00	0.714
Norilsk Nickel	+0.57	7065.00	0.649

(36.0014 rubles – U.S. $1)

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