Russian stocks rise on high oil prices, favorable environment

MOSCOW, Oct 6 (PRIME) -- The Russian stock market edged up on Friday because the oil prices remain high and support the market and the national oil and gas companies, while the favorable environment provided some additional momentum, analysts said.

The MOEX Russia Index rose 0.42% to 3,144.89 and the RTS increased 0.46% to 987.14.

Veles Capital analyst Yelena Kozhukhova said that the Russian market edged up thanks to the favorable external background. The European markets rose on the inspiring signals from the growth of industrial orders in Germany, while futures for the U.S. stock indices rose as investors expect optimistic signals from the labor market report to be released later in the day.

Also, the oil prices gained less than 0.5% ahead of a release of the key U.S. macroeconomic data, Kozhukhova said.

She also said that that the shares of power utility Wholesale Generating Company-2 (WGC-2) lost 1.43% to 0.5783 rubles as the company’s shareholders are to discuss additional shares next week.

Alexei Golovinov, senior analyst at Promsvyazbank, said that the oil and gas companies again outperformed the market, with Lukoil and Bashneft leading the way and gaining 0.79% to 6,774.50 rubles and 1.86% to 2,000 rubles, respectively.

“We expect the MOEX Russia Index to continue moving in a 3,100–3,200 range soon, and potential actions of the authorities to stabilize the currency market would be the main risk. We still prefer the shares of oil and gas companies in spite of a recent contraction of oil prices because the prices remain high especially taking into account the U.S. dollar rate,” he said.

Director of the stock market department at managing company Pervaya Anton Kravchenko said that the Russian market may continue growing next week if the favorable environment remains including the weak ruble and budget stimuli.

“The potential growth of MOEX Russia Index including total return could reach 30% until 2024,” he said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Lukoil	+0.79	6774.50	4.545
Sberbank	+0.40	260.42	4.423
Yandex	+0.32	2488.00	3.481
Gazprom	+0.05	166.15	2.366
Surgutneftegas prefs	-1.16	56.16	2.305

(99.6762 rubles – U.S. $1)

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