Russian stocks rise on favorable news flow, Gazprom’s growth

MOSCOW, Jul 20 (PRIME) – The Russian stocks increased on Monday supported by expectations of rising demand for oil, affirmation of the country’s rating and growth of gas giant Gazprom, analysts said.

The MOEX Russia Index rose 0.99% to 2,802.24 and the RTS increased 1.62% to 1,235.85.

“As compared with the previous week’s closing, the market forecasts have improved taking into account new July forecasts for oil demand from OPEC, affirmation of Russia’s rating by S&P agency, and contraction of foreign currency interventions of the Finance Ministry,” Alexander Osin, analyst at investment company Freedom Finance, said.

Another reason for the rise was a 1.92% growth to 188.20 rubles of Gazprom following reports that natural gas prices for the Russian industry will grow by 3% on August 1. The information supports the forecasts that Gazprom’s revenue will remain flat this year, while under the market average forecast, it will fall by 17%.

“Changes in the news flow around the largest issuer of the market is a positive factor for the bourse,” Osin said.

Yelena Kozhukhova, analyst at Veles Capital, said that the Russian market grew in spite of a mixed external background. The U.S. stock index futures were in the red during the day, and the oil prices fellon reports about a possible contraction in demand from Chinese refineries because of the floods in the country. But the European bourses stayed in the green zone supporting the local market.

Valery Yemelyanov, analyst at Freedom Finance, said that strong performance of the RTS Index might be the result of activity of international funds.

“Today the indices that track dynamics of emerging countries and currencies rose, which is an infrequent thing when developed states contract partially. The RTS Index … is obviously aiming at further growth,” Yemelyanov said.

Kozhukhova also said that shares of power holding Inter RAO went up 6.57% to 5.6855 rubles continuing a July 17 increase on expectations of revision of the company’s long-term development strategy at the end of July.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.80	212.49	7.844
Gazprom	+1.92	188.20	5.335
Inter RAO	+6.57	5.6855	4.888
Norilsk Nickel	+0.32	18408.00	4.038
Lukoil	-0.27	4933.00	4.036

(71.7139 rubles – U.S. $1)

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