Russian stocks rise on favorable corporate news, econ statistics

MOSCOW, Nov 3 (PRIME) -- The Russian stock market grew on Friday mainly thanks to a flow of corporate news and favorable economic statistics, analysts said.

The MOEX Russia Index rose by 0.36% to 3,208.63 and the RTS increased by 1.29% to 1,093.74.

“The trade on the Russian stock floors stayed in the green zone on November 3 … The shares were supported by corporate news, including the releases of great quarterly results and expectations of the same for some other issuers. Recommendations from the boards of directors provide additional positive momentum, including the Norilsk Nickel’s recommendation for interim dividends for the first nine months of 2023,” Natalya Milchakova, leading analyst at Freedom Finance Global, said.

Also, an optimistic investor mood prevailed on the leading foreign stock floors, and the market tried to price in inflation slowdown, while waiting for the regulators to end the cycle of toughening monetary conditions, she said.

The shares of internet company VK were among the gain leaders, adding 4.53% to 614 rubles on expectations of a robust financial performance in July–September, Milchakova said.

Otkritie Research expert Andrei Kochetkov said that S&P Global’s seasonally adjusted Purchasing Managers’ Index in the Services industry of Russia contracted to 53.6 in October from 55.4 in September, but the sector continued its expansion for the ninth month in a row.

“The increase of production was explained as usual by high client demand and by another increase in new orders. Given the business activity data, the 5% growth of gross domestic product (GDP) in September is not surprising, and the economic expansion could actually overshoot 3% this year,” he said.

The ruble also returned to growth again because the mandatory sales of foreign currency by exporters and the 15% key rate of the central bank continue supporting it, he said.

Kochetkov also said that the Russian Energy Ministry said that the country’s oil exports in November would amount to 300,000 barrels per day below the level of June, while the Algerian parliament allowed the country’s president to declare war against Israel.

“Military group Hezbollah could also get involved in the Palestinian–Israeli conflict. This means that the conflict will elevate to a whole new level and start influencing the entire Middle East,” he said.

He also said that fertilizer producer PhosAgro lost 0.87% to 6,643 rubles after the U.S. Department of Commerce tripled the import duty on phosphates from the company to 28.5% from 9.19%. At the same time, conditions for the company’s competitors were improved, for instance, the duty for Morocco’s OCP was reduced to 2.12% from 19.97%.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Norilsk Nickel	-0.44	17998.00	6.179
Sberbank	+0.16	269.48	4.877
Mechel	0.00	278.20	4.347
VK	+4.53	614.00	3.253
Moscow Exchange	+1.22	201.98	2.810

(93.1730 rubles – U.S. $1)

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