Russian stocks rise on China’s support measures

MOSCOW, Oct 23 (PRIME) -- Russian stocks increased on Friday pushed higher by China’s new economic support measures, analysts said.

The MICEX rose 0.78% to 1,725.45 and the RTS increased 1.41% to 872.86.

“Actions of the Chinese monetary authorities to cut the level of obligatory reserves for banks became the reason for optimism. The slowdown of the world’s second largest economy has hurt the risk appetite of global investors, and they speculate on new stimulus with every publication of Chinese statistics. And when something happens, buying covers both emerging and developed markets,” Sofya Kirsanova, an analyst at investment company Raiffeisen Capital, said.

The Russian stock market was also supported by a positive external background. The E.U. indices continued their growth on a Thursday statement by European Central Bank President Mario Draghi that the bank will continue its quantitative easing program and may even expand it. The U.S. indices grew as investors as almost sure that the U.S. Federal Reserve System will keep its key rate intact at the next meeting, Kirsanova said.

“The current rise of the Russian indices is happening thanks to support from the external background…It should be noted that in the past few days the Russian market has stopped fearing geopolitical risks,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

Power utility Irkutskenergo lost 5.94% in correction after Thursday’s 20% rally, which happened after power holding Inter RAO CEO Boris Kovalchuk said that the power holding is ready to buy EuroSibEnergo’s 50.2% stake in Irkutskenergo in addition to the holding’s 40%.

Low-liquid common and preferred shares of Bank Vozrozhdenie grew 1.99% and 1.52%, respectively. On Thursday, the bank received 6.6 billion rubles worth of OFZ federal bonds from the Deposit Insurance Agency.

Common and preferred shares of biggest bank Sberbank outperformed the market and rose 4.53% and 3.99% due to the ruble strengthening.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+4.53	90.45	12.248
Gazprom	-0.22	138.94	4.201
Lukoil	+0.09	2336.70	3.446
Norilsk Nickel	+1.99	9735.00	3.094
Magnit	-2.31	11500.00	2.148

(62.7888 rubles – U.S. $1)

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