Russian stocks rise on Monday on positive mood of US investors

MOSCOW, Aug 30 (PRIME) -- The Russian stock market grew on Monday thanks to the positive impact that came from the U.S. after U.S. Federal Reserve System’s Chairman Jerome Powell confirmed the market’s expectations that the authority would not suspend its market support program soon, analysts said.

The MOEX Russia Index rose 1.06% to 3,928.50 and the RTS increased 1.23% to 1,684.70.

“The MOEX Russia Index grew today following dynamics of the U.S. stock floors. Powell’s speech at a symposium in Jackson Hole confirmed the market expectation that suspension of the quantitative easing program will start in a relatively long time and will go slow,” Alexander Osin, head of Freedom Finance’s department for operations on the Russian stock market, said.

Another factor that stimulates the activity of “bulls” in the medium term is reports about a possibility of the OPEC+ countries revising the current agreement on September 1 and rejecting the decision to raise production by 400,000 barrels a day in the next several months, Osin said.

Artemy Shamshukov, analyst at investment company Finam, said that the fact that only 18,325 new coronavirus cases were registered in Russia over the past day, the lowest figure since June 23, also supported local investors.

Mikhail Shulgin, head of the global research department of Otkritie Broker, said that besides the positive dynamics of European and U.S. bourses, the flow of local corporate stories became the reason for buyers to maintain their activity today.

Multi-industry holding Sistema rose by 2.70% to 30.45 rubles in reaction to its revenue rising by 16% to 180 billion rubles in April–June, while its operating income before depreciation and amortization (OIBDA) gained 6.7% to 58.49 billion rubles. The business growth of Sistema’s subsidiary mobile operator MTS reached a double-digit figure, while the revenue of subsidiary pulp and paper holding Segezha Group jumped by 45%, Shulgin said.

Veles Capital’s analyst Yelena Kozhukhova said that ordinary and preferred shares of metals and mining group Mechel jumped by 14.29% and 14.13%, respectively, as investors were still reacting to the company’s robust financial report for January–June and to contraction of the net debt.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Gazprom	+1.28	303.50	19.283
Sberbank	+0.48	328.97	6.116
Mechel prefs	+14.13	252.45	4.242
Norilsk Nickel	+1.37	24314.00	3.701
Mechel ords	+14.29	120.00	3.412

(73.9866 rubles – U.S. $1)

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