Russian stocks rise on oil price growth, geopolitical stability

MOSCOW, Jun 2 (PRIME) -- The Russian stock market increased on Wednesday as the local trade received support from high oil prices, while players decided to continue purchases as the geopolitical situation remained stable, analysts said.

The MOEX Russia Index rose 1.41% to 3,817.68 and the RTS increased 1.82% to 1,643.66.

“After a morning hitch, the national market showed growth once again. The oil price, which stays close to U.S. $71 per barrel, helps the market in this. Europe is also showing a slight growth due to the car industry and energy sectors,” Andrei Kochetkov, lead analyst for global research at Otkritie Broker, said.

Veles Capital’s analyst Yelena Kozhukhova said that major global bourses were in the green zone, and players of the Russian market shared the optimistic mood.

“Condition of the international economy and of the geopolitical background has more or less stabilized, which makes purchases possible,” she said.

Andrei Vernikov, head of the investment analysis and education department of investment company Univer Capital, said that investors also focused on the news flow from the St. Petersburg International Economic Forum.

“The main event of the day is the international economic forum that was launched in St. Petersburg. A record amount of contracts was signed at the previous forum two years ago, so we all expect positive news from this forum,” Vernikov said.

Kochetkov also said that the oil and gas sector was the market leader on Wednesday thanks to dynamics of oil prices, but market players also priced in a significant increase in gas production and exports by gas giant Gazprom, so the company gained 2.63%. Shareholders of Rosneft approved 2020 dividends at 6.94 rubles per share, and the company grew by 1.38%, he said.

Kozhukhova also said that steelmaker Severstal lost 1.03% due to general uncertainty in the metals industry following statements of public officials about excessive profits of the companies.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Lukoil	+3.20	6409.00	13.243
Gazprom	+2.63	270.79	13.031
Sberbank	+0.72	313.85	7.594
Norilsk Nickel	+0.72	26942.00	4.672
Rosneft	+1.38	551.50	4.669

(73.2411 rubles – U.S. $1)

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