Russian stocks rise on favorable environment, low mortgage rates

MOSCOW, Jun 23 (PRIME) -- The Russian stock market grew on Thursday supported by a favorable external background, while the shares of banks and real estate developers increased on prospects mortgage rate cuts, analysts said.

The MOEX Russia Index rose 1.31% to 2,404.54 and the RTS increased 0.93% to 1,416.41.

“The foreign stock market mood was moderately optimistic caused by a usual upward correction after serious sales,” Veles Capital’s analyst Yelena Kozhukhova said.

The background for the market was positive as the Brent oil price switched to growth in the middle of the day on worries about supply restrictions, while the futures for the U.S. stock indices gained around 0.3%, she said.

The securities of real estate developers were the market leaders with PIK Group gaining 9.76% to 691.50 rubles and Etalon Group rising by 3.66% to 60.54 rubles on expectations of lower interest rates on state-supported mortgage loans, which should expand demand for housing, Kozhukhova said.

“The national stock market managed to maintain the upward movement until the end of trade on June 23. The market is still under a serious impact of local factors and corporate stories, and today, the shares of real estate developers provided the main positive impact,” Yevgeny Linchik, head of the stock management department at managing company Pervaya, said.

Otkritie Research leading analyst Andrei Kochetkov said that expectations of higher mortgage lending also resulted in the purchases of banking shares. VTB Bank Deputy CEO Anatoly Pechatnikov said that the new low interest rates on state-supported mortgage loans may double the average monthly mortgage lending in the several coming months. Sberbank grew by 2.81% to 136.85 rubles, while VTB Bank increased by 0.41% to 0.018585 rubles.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+2.81	136.85	14.710
Gazprom	+2.60	303.50	13.868
Lukoil	+0.27	4150.00	2.734
Novatek	-1.56	1010.00	2.656
Norilsk Nickel	+0.84	19100.00	1.322

(53.2788 rubles – U.S. $1)

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