Russian stocks rise in line with oil prices, foreign bourses

MOSCOW, Oct 5 (PRIME) -- Russian stocks increased on Thursday supported by the growth of oil prices with the external background also being favorable to the local market, analysts said.

The MICEX rose 0.54% to 2,088.32 and the RTS increased 0.61% to 1,144.05.

Anastasia Sosnova, a leading analyst at Bank Rossiysky Capital, said that the general background was positive for the Russian stock market. The U.S. stock indices grew at the opening, and the U.S. dollar index also shot above 93.6 on expectations of optimistic data on the U.S. labor market. The European stocks gained about 0.4% after Catalonia delayed the announcement of independency from Spain.

“The improvement of the background and the restart of growth in oil prices prompted positive trends at the Russian stock market,” Sosnova said.

The Brent oil price gained 1.812% to U.S. $56.83 per barrel as of 5.33 p.m. Moscow time, according to the ICE exchange.

“The oil prices returned to growth after several days of correction…The prices were supported by comments of the Russian president that the OPEC deal may be prolonged until the end of 2018, and by a statement of the Turkish president that Turkey, Iran and Iraq plan to coordinate suspension of oil transit from the Iraqi Kurdistan,” Sofya Kirsanova, an analyst at managing company Raiffeisen Capital, said.

Higher oil prices also supported the ruble, Kirsanova said.

She also said that oil and gas companies were the leaders of the market, with independent gas produced Novatek rising 1.74% to 680 rubles, oil company Tatneft gaining 1.24% to 419.95 rubles, and common and preferred shares of oil company Bashneft growing 2.26% to 2,080 rubles and 2.86% to 1,368 rubles, respectively, and expectations of high dividends also supported shares of the latter company.

Mobile operator MegaFon grew XX% to XX rubles as investors expect the security to be include into the MSCI index during the November rebalancing, Kirsanova said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.89	193.74	9.467
Gazprom	+1.43	123.50	4.914
Norilsk Nickel	+1.13	10328.00	1.929
Lukoil	+0.51	3054.00	1.378
ALROSA	-1.63	80.30	1.265

(57.7832 rubles – U.S. $1)

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