Russian stocks rise because weak ruble pushes MICEX higher

MOSCOW, Jul 28 (PRIME) -- Russian stocks increased on Thursday, while MICEX rose because exporters’ shares were supported by a ruble fall against the U.S. dollar on the back of lower oil prices, and the RTS traded almost flat.

The MICEX rose 0.82% to 1,954.45 and the RTS increased 0.19% to 923.39.

“The main Russian stock indices rose on Thursday despite negative dynamics of global stocks and lower oil prices,” Promsvyazbank senior analyst Ilya Frolov said.

Andrei Dirgin, head of a research department at Alfa-Forex, said the ruble-denominated MICEX rose on the back of the weakening of the ruble, while the dollar-denominated RTS traded almost flat.

Raiffeisen Capital analyst Sofya Kirsanova said, “The exchange rate was depressed by lower oil price, which fell from U.S. $45.8 to below $42 per barrel of Brent during the last six trading sessions, and the fact that the July tax period is over.”

“Oil prices fell because yesterday the U.S. energy ministry published a report on higher oil reserves, as well as oil production, which rose by 21,000 barrels daily in the country,” she said.

The national currency depreciated to about 66.7 against the dollar by end of the trading session.

Internet giant Yandex jumped 4.69% to 1,485.5 rubles on the news that its adjusted net income increased 40% on the year in April–June, as calculated under the U.S. GAAP standards.

Power producer Unipro, earlier known as E.ON Russia, increased 3.22% to 2,950 rubles after publishing strong financial results for January–June. The company’s net profit grew 7% on the year, as calculated under Russian Accounting Standards (RAS).

Preferred shares of oil and gas company Surgutneftegas fell 1.77% to 33.31 rubles, still depressed after going ex-dividend, Frolov said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.04	136.85	7.687
Gazprom	+0.29	139.90	3.466
Magnit	+2.71	10292.00	1.933
Norilsk Nickel	+0.95	9535.00	1.729
Lukoil	+1.78	2887.00	1.664

(65.9467 rubles – U.S. $1)

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