Russian stocks rise on expectations of US–China dispute end

MOSCOW, Feb 22 (PRIME) -- Russian stocks grew on Friday in line with the global bourses as foreign investors expected improvements in the U.S.–China trade dispute, analysts said.

The MOEX Russia Index rose 0.74% to 2,488.63 and the RTS increased 0.82% to 1,198.40.

“The Russian stock indices showed noticeable growth today regaining some losses it suffered yesterday…Optimistic expectations that the U.S. and China will ultimately sign a trade deal prevailed over the weak economic statistics published by the U.S. and Europe yesterday. Moreover, obvious problems in the key economies of the world raise chances for monetary incentives, which supports demand for risky assets in the world,” Dmitry Babin, stock market expert at BCS Broker, said.

Vasily Oleinik, expert at investment company Finam, said that U.S. President Donald Trump is to meet with China’s Vice Premier Liu He today to sign a road map of the agreement, after which details of the deal should emerge.

“This will make everything clearer, and everyone would be able to forget about this story for several months,” Oleinik said.

“The external background was moderately positive during the day. Oil prices were in the green zone gaining 0.5–1% thanks to a general global improvement in risk appetite and to expectations of progress in the U.S.–China trade talks. Oil prices have hit new highs since November 2018. Investors were not even concerned by the Thursday data on growth of reserves and oil production in the U.S.,” Veles Capital’s analyst Yelena Kozhukhova said.

Andrei Kochetkov of Otkritie Broker said that metals producers rose due to prospects of participation in reconstruction of 60 Russian airports as announced by President Vladimir Putin in his recent address to the Federal Assembly. Steelmakers Novolipetsk Steel (NLMK) and Magnitogorsk Iron and Steel Works (MMK) rose 1.64% and 1.86%, respectively, while aluminum giant UC RUSAL gained 0.90%.

Federal Grid Company of Unified Energy System (FGC UES) was also among the gain leaders rising 3.74% due to strong positive results. The company posted a 32.6% increase in net profit in 2018, as calculated under Russian Accounting Standards (RAS), Kochetkov said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.90	205.25	9.376
Lukoil	+1.46	5527.00	3.140
Gazprom	+0.74	154.64	2.041
Norilsk Nickel	+0.50	14122.00	1.338
Rosneft	+1.27	401.50	1.138

(65.5401 rubles – U.S. $1)

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