Russian stocks rise on favorable environment, oil price growth

MOSCOW, Aug 5 (PRIME) -- Russian stocks grew on Wednesday supported by an optimistic mood of major foreign bourses and by a rally in oil prices, while macroeconomic statistics showed promising results, analysts said.

The MOEX Russia Index rose 1.78% to 2,992.78 and the RTS increased 2.79% to 1,295.27.

“Russian stock indices grew considerably in the middle of the trading session, supported by the mood of foreign players,” Yelena Kozhukhova, analyst at Veles Capital, said.

Futures for the Brent and WTI oil blends set new post-March record highs. The American Petroleum Institute’s (API) data showed a deeper contraction of oil reserves in the U.S. than expected, and the Beirut explosion strengthened geopolitical uncertainties, resulting in a hike of oil prices, Kozhukhova said.

“The MOEX Russia Index broke through the 2,950 mark in the first few minutes of the trade and went up after that. The Brent oil price made a case for growing above U.S. $45 per barrel. … Economic statistics, including the national one, favored optimistic players once again. The Services purchasing managers' index (PMI) in Russia grew to 58.5 in July from 47.8 in June, and China’s composite indicator Caixin grew to 54.5 in July from 54.2 in June. The Eurozone’s composite indicator rose to 54.9 from 48.5,” Otkritie Broker’s lead analyst for global research Andrei Kochetkov said.

Freedom Finance’s analyst Alexander Osin said that the Russian market continued closing the gap in recovery dynamics from other global bourses.

Osin also said that shares of gas giant Gazprom and oil major Rosneft were among the leaders on Wednesday, growing by 3.43% to 189.60 rubles and by 1.32% to 364.55 rubles, respectively, receiving support from Tuesday dynamics of shares of leading U.S. oil and gas companies.

Russia’s second largest bank VTB lost 4.69% to 0.03849 rubles after the government allowed it to pay dividends for 2019 of only 10% of the net profit calculated under International Financial Reporting Standards (IFRS), Osin said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Gazprom	+3.43	189.60	13.533
Sberbank	-0.52	225.99	12.123
Polyus	+4.43	18151.00	8.468
Norilsk Nickel	+2.46	20900.00	7.158
VTB	-4.69	0.03849	7.071

(73.3806 rubles – U.S. $1)

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