Russian stocks rise on geopolitics, Brent, ruble strengthening

MOSCOW, Mar 5 (PRIME) -- Russian stocks grew on Thursday backed by the Brent price positive dynamics, the ruble strengthening supported by the central bank’s repo auctions, the European Central Bank’s readiness to prolong quantitative easing after September 2016, and on the background of the Ukrainian conflict stabilization, analysts said.

The MICEX rose 0.07% to 1,760.55 and the RTS increased 2.55% to 912.38.

“The upward dynamics was supported by a rebound in oil prices today, which were above U.S. $61 (per barrel) for a while,” Anton Fomin, analyst at InstaForex, said.

“Positive dynamics of the ruble based on a Brent (price) stable rise from Thursday morning contributed to the RTS growth,” Natalya Samoilova, head of Golden Hills-Kapital’s analytical department, said.

The European Central Bank’s decision to ease monetary policy and keep a record low interest rate of 0.05%, as well as to start state bond purchases from March 9, and its readiness to extend the quantitative easing program beyond September 2016 provided support for the Russian market as well, Samoilova said. The bank’s decisions spurred European investors’ interest in risky foreign assets, including some Russian stocks.

The Russian stock market followed the Brent price positive dynamics on the background of some stabilization in Ukraine, Timur Nigmatullin, analyst at Finam, said.

The Russian ruble also increased against the U.S. dollar and the euro due to the central bank’s repo auctions, which are likely to stabilize situation during a period of corporate debt payments in March, Nigmatullin said.

TMK fell 2.50% due to weak financial results published on Thursday; the company posted a U.S. $217 million net loss in 2014 against $215 million net profit in 2013, as calculated under International Financial Reporting Standards.

Mechel rose 4.53% as its net loss narrowed 17% to 23.086 billion rubles in 2014, as calculated under Russian Accounting Standards, according to its report.

ChelPipe, whose pipe sales rose 24% in 2014 to 2 million tonnes, still was among growth leaders; the company stocks increased 12.30%.

Below are the MICEX’ five most active stocks on Thursday:

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.54	72.70	12.837
Gazprom	+0.52	154.80	6.798
Lukoil	-1.35	2915.00	3.345
Norilsk Nickel	+0.36	11180.00	2.433
Rosneft	+1.76	269.60	1.773

(61.8745 rubles – U.S. $1)

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