Russian stocks rise on lack of negative news, Chinese econ stimuli

MOSCOW, Sep 4 (PRIME) -- The Russian stock market grew on Monday on the absence of bad news and the Chinese government’s economic stimuli measures, analysts said.

The MOEX Russia Index rose by 1.16% to 3,268.97 and the RTS increased by 0.76% to 1,063.41.

“The MOEX Russia Index showed hit a new annual record today. The Russian markets continued rising because of a lack of a negative news flow due to the holidays in the U.S. to a certain degree. Also, there were no negative developments during the meeting of Russian President Vladimir Putin and Turkish President Recep Tayyip Erdogan in Sochi,” Yevgeny Linchik, head of managing company Pervaya’s alternative investment department, said.

Otkritie Broker’s leading analyst for global research Andrei Kochetkov said that the news from China, where the authorities initiated economic stimuli measures, became the main factor of optimism for the Russian market.

“The (Chinese government’s) main focus was on the real estate sector through softening mortgage lending conditions,” he said, adding that it caused Europe’s basic metals index to rise by about 1.8%, triggering the increase of the European stock indices and the Russian market as well.

“The MOEX Russia Index and the RTS Index rose because of a lack of significant negative drivers, and the ruble-denominated indicator is getting close to 3,300 as the Russian currency depreciates,” Veles Capital’s analyst Yelena Kozhukhova said.

She also said that the securities of Internet company VK gained 3.21% to 764.20 rubles as the company continues development of its business with an official launch of the VK Video platform.

Oil and gas pipeline producer TMK rose by 3.65% to 271 rubles because of an upcoming dividend cut-off.

Oil company RussNeft increased by 5.10% to 187.40 rubles in reaction to the optimism of CEO Yevgeny Tolochek. He said earlier in September that the company continues efficient drilling, and was optimistic in its forecasts for July–December because of normalization of the discount between the Brent and Urals oil prices, Kozhukhova said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.82	267.17	11.753
Transneft prefs	+0.76	139000.00	8.819
Gazprom	+1.51	180.91	6.841
PhosAgro GDRs	+7.4	1317.40	4.994
Novorossiysk Grain Plant	+17.44	2290.00	4.650

(96.3411 rubles – U.S. $1)

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