Russian stocks rise on US corporate reports, easing of Chinese woes

MOSCOW, Jul 28 (PRIME) -- The Russian stock market grew on Wednesday thanks to a robust reporting season in the U.S., while contraction of the Chinese market slowed down, analysts said.

The MOEX Russia Index rose 1.32% to 3,782.28 and the RTS increased 1.36% to 1,616.34.

“On Wednesday, the Russian market increased the green zone. The market’s positive mood was mostly secured by a good season of reports in the U.S. and by the easing tension on the Chinese stock markets,” Alexander Kovalyov, analyst at investment company Finam, said.

Alexander Osin, head of Freedom Finance’s department for trade operations on the Russian stock market, said that 19% of the companies that comprise the S&P 500 index published their financial reports and 83% of them outperformed market expectations. Contraction of the Chinese stock market also slowed down significantly, but investors are still selling because of the risks of stronger regulatory pressure on the local companies, Osin said.

“A better situation on the Asian markets, the increase of European indices, and a relative calmness in the commodity contracts provided certainty to the Russian investors. Robust dynamics of the oil and gas sector made the major contribution to the growth of the indices,” Otkritie Broker leading analyst for global research Andrei Kochetkov said.

Veles Capital Yelena Kozhukhova said that independent gas producer Novatek and internet giant Yandex were in the gain leaders rising 2.91% to 1,599.60 rubles and 1.25% to 5,098 rubles, respectively, in reaction to good financial reports. Novatek’s net profit attributable to the shareholders jumped to 164.439 billion rubles, while the net profit of Yandex soared by 97% in April–June.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Gazprom	+1.63	282.60	8.385
Sberbank	+1.09	302.98	7.432
Norilsk Nickel	+1.33	25770.00	4.241
Lukoil	+1.41	6422.00	4.058
MMK	+0.37	68.66	3.690

(73.8471 rubles – U.S. $1)

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