Russian stocks rise on oil, non-ferrous metal price growth

MOSCOW, Jan 27 (PRIME) -- The Russian stock market grew on a low trading volume on Friday on the back of an increase of oil and non-ferrous metal prices, analysts said.

The MOEX Russia Index grew by 1.04% to 2,189.35, and the RTS index increased 0.66% to 992.37.

"The low trading volumes mean there are no ideas on the market for a strong trend. Changes in the securities continued based on their strong or even weak previous sales or purchases,” Andrei Kochetkov, leading analyst for global research at Otkritie Research, said.

“Expectations of a new European embargo, on Russian oil products, and discussions of price restrictions on Russian fuel in the E.U. and the G7 created some uncertainty."

The oil prices approached U.S. $89 per barrel of the Brent blend with the same set of ideas behind the trend: active economic recovery in China is expected after the holidays after China reported a 72% decrease of severe COVID-19 cases and a 79% mortality drop since the beginning of January, the analyst said. Recovery in China was the key idea supporting the Russian market, he added.

Veles Capital analyst Yelena Kozhukhova said that rising prices for non-ferrous metals helped the Russian market grow as well.

Coal producers continued to rise, with Mechel and Raspadskaya grew 4.06% and 3.51% respectively, reaching peaks since September 2022 after Russian Railways deputy CEO said that the company would ensure the amount of transportation eastwards and could raise the traffic in 2023, the analyst said.

According to Kochetkov, VK was under the pressure, decreasing 0.92% after the news about its intent to buy 49% more in company called Medium Quality Production.

Freedom Finance Global’s Senior Analyst Natalya Milchakova said that Human Stem Cells Institute was one of the leaders of the session on the news about a new project of its affiliate.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.49	153.14	4.463
Human Stem Cells Institute	+11.61	79.8	2.502
Surgutneftegas	+6.01	23.015	2.317
Polymental	-3.54	466.4	2.208
Gazprom	+1	159.15	1.748

(69.1263 rubles – U.S. $1)

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