Russian stocks rise on Putin’s address, favorable environment

MOSCOW, Apr 21 (PRIME) -- The Russian stock market edged up on Wednesday as President Vladimir Putin focused on local problems in his annual speech, while rising oil prices and investor expectations of robust corporate reports in the U.S. also helped, analysts said.

The MOEX Russia Index rose 0.26% to 3,561.72 and the RTS increased 0.60% to 1,464.17.

“The national market sided with the Chinese indices, which decided to grow today. The key Russian event was the annual address of the president to the Federal Assembly. Despite expectations, the address was focused on solution of the internal problems instead of rockets and the international situation. For the market, this was more positive than negative,” Andrei Kochetkov, leading analyst for global research at Otkritie Broker, said.

Putin suggested giving 500 billion rubles to the regions for infrastructure projects, creation of an cheap lending program for tourism infrastructure, reduction of foreign currency control for non-energy exporters, and improvement of business climate.

Yevgeny Mironyuk, analyst at investment company Freedom Finance, said that the support measures announced by Putin in his address were positive for the market, but the external background improved during the day as well.

“The oil prices stopped their contraction, and the Brent oil price recovered to U.S. $66 per barrel as of the end of the trade session in Russia. The futures for the S&P 500 index gained 0.4% as of 6.00 p.m. Moscow time, as the current season of corporate reports in the U.S. may turn out to be the best for the past two years, which will prompt the stock indices to hit new records,” Mironyuk said.

Veles Capital’s analyst Yelena Kozhukhova said that Magnitogorsk Iron and Steel Works (MMK) slightly outperformed the market and grew 0.44% to 67.71 rubles after the company reported a 28% revenue growth in January–March, and a 64% increase of EBITDA, she said.

Mironyuk also said that shares of the second largest bank of Russia VTB gained 1.43% to 0.047495 rubles as investors were still pricing in the news from the bank’s investor day.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.24	288.10	13.767
Gazprom	0.00	230.00	7.730
Norilsk Nickel	+0.02	25206.00	7.247
Lukoil	+0.64	5934.50	4.758
MMK	+0.44	67.71	4.217

(76.0155 rubles – U.S. $1)

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