Russian stocks rise in correction in spite of lack of drivers

MOSCOW, Dec 13 (PRIME) -- The Russian stocks edged up on Wednesday in a correction after a long period of losses, but the market lacked any serious drivers and received support only from purchases in some issuers, analysts said.

The MOEX Russia Index rose by 0.41% to 3,032.22 and the RTS increased by 0.63% to 1,062.67.

“The Russian stocks made a new attempt of an upward correction after almost three weeks of losses … There are no significant positive drivers for the Russian market to grow right now. The oil prices continue their gradual contraction, the Russian currency is rising, and the central bank is likely to raise its key rate again on Friday, which may strengthen the cross-flow into the conservative instruments with expanding margins. This is why the MOEX Russia Index is still under the threat of a further contraction,” managing company Pervaya analyst Ivan Kapustyansky said.

Kapustansky said that the Brent oil price dipped below U.S. $74 per barrel because the investors were still pessimistic about the market’s prospects. The combined global oil output is falling slower than expected, while the U.S. oil exports are rising. The ruble could also grow even further because the U.S. dollar is losing ground on the global market and the taxpaying period is soon to start in Russia, Kapustyansky said.

“The foreign stock floors’ mood stabilized in the middle of the week. A series of final meetings of the key international central banks for this year are to start today, and the stock indices in Europe and the U.S. are at their local highs meaning investor expectations for the several coming months are optimistic,” Veles Capital’s analyst Yelena Kozhukhova said.

After showing some weakness in the morning, the Russian stock market switched into the green zone thanks to purchases in some securities like the shares of internet company VK, the receipts of real estate developer Etalon Group, and the shares of multi-industry holding company Sistema, Kozhukhova said.

Media reported that VK plans to acquire the foreign language and programming school UFirst, formerly known as English First, which should strengthen the company’s division of child education. VK gained 3.33% to 552.20 rubles, while Etalon Group rose by 2.98% to 73.90 rubles pricing in the operating report for November, she said.

Sistema posted a moderately favorable financial report for July–September calculated under Intentional Financial Reporting Standards, showing an 18.2% increase in revenue to 280.8 billion rubles and a net profit of 4.3 billion rubles. The company’s shares rose by 0.90% to 15.483 rubles, she said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.64	259.25	6.832
Lukoil	+0.39	7042.00	3.479
Mechel	-0.27	269.80	2.632
Yandex	-0.12	2254.20	2.308
Gazprom	+1.03	164.14	1.851

(90.2158 rubles – U.S. $1)

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