Russian stocks rise on hopes for Ukraine conflict settlement

MOSCOW, Feb 11 (PRIME) -- Russian stocks rose on hopes that an agreement to settle the Ukrainian conflict will be reached during Minsk negotiations, in anticipation of a financial reporting period and despite the Brent price local weakening, analysts said on Wednesday.

The MICEX rose 1.22% to 1,763.60 and the RTS increased 0.78% to 832.33.

“Market participants are watching the negotiations between Russia and the E.U. and U.S. representatives on the Ukrainian conflict with optimism. The importance of the event was stressed by (U.S. President) Barack Obama during a phone call to (Russian President) Vladimir Putin yesterday,” Sofia Kirsanova, analyst at Raiffeisen said.

Hopes that the negotiations will bear fruit propelled even the Russian oil sector which grew despite the oil price decrease, Vitaly Manzhos, analyst at Nord-Capital, said.

Another positive factor for the stocks is the upcoming period of annual financial reports that particularly supports the oil and metals sectors, Vadimir Bragin, head of Alfa-Capital’s analytical department, said.

The growth was limited by the ruble weakening on the back of a Brent price fall increasing inflationary risks, Bragin said.

Razgulay Group grew 39.79% to 14.37 rubles after the company was included on the government’s list of systemic companies which can receive anti-crisis aid.

UTair, which is also on the list, fell 12.29% to 15.35 rubles as the company runs high risks of bankruptcy.

Protek rose 6.97% to 43 rubles on strong preliminary financial results for October–December 2014 and 2014, as its consolidated revenues rose 12.5% on the results of the year and 21% in October–December.

Rosneft was among growth leaders in the oil sector ahead of a reporting period and despite weakening oil prices. It rose 3.23% to 256.35 rubles although an Amsterdam district court has ruled in favor of Yukos International UK BV in a U.S. $333 million suit against the company.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.18	65.12	9.374
Gazprom	+0.83	150.55	6.359
Lukoil	+2.30	3069.10	4.366
Norilsk Nickel	+3.10	11697.00	2.414
Rosneft	+3.23	256.35	2.299

(65.4469 rubles – U.S. $1)

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