Russian stocks rise on oil price growth, worldwide econ support

MOSCOW, May 25 (PRIME) – The Russian stocks grew on Monday as the oil prices returned to their two-month highs and maroeconomic statistics and economic stimulation policies, analysts said.

The MOEX Russia Index rose 1.79% to 2,757.93 and the RTS increased 2.10% to 1,213.41.

“The oil price returned above the psychologically-important level of U.S. $35 per barrel as the U.S.–China conflict over Hong Kong did not worsen, while the data on new cases of the coronavirus infection is generally positive. … The Russian market was very enthusiastic toward the oil price’s return to its two-month highs,” Valery Yemelyanov, analyst at investment company Freedom Finance, said.

The bourses of the U.S., the U.K., India, and Singapore were closed because of the holidays making the background calmer than usual, Yemelyanov said.

“The only strong driver for bourses today is macro statistics that came from the continental part of Europe. Germany’s gross domestic product shrank by 2.2% on the quarter and by 1.9% on the year in January–March, which was strictly within the expected range. The stock indices reacted with growth,” he said.

“The Russian stock market decided to ignore the contraction in Hong Kong and stayed in the green zone. The positive mood was supported by expectations that the central bank would reduce its key rate, as well as by the stimulation measures of other countries. Japan is preparing a new support program for troubled companies worth almost 100 trillion yen,” Andrei Kochetkov, senior analyst at Otkritie Broker, said.

The domestic news flow was not rich, but the government approved a temporary ban on imports of oil products until October 1, which the market connects to government’s support of the oil industry, Kochetkov said.

Russian power companies were among the growth leaders, which may be connected to revaluation of the yield on their shares in light of the expected cut of the central bank’s key rate, Kochetkov said. State power grid holding Rosseti gained 5.57% to 1.5292 rubles, power utility Territorial Generating Company-1 grew 4.77% to 0.012646 rubles, and preferred shares of power producer Lenenergo rose 5.61% to 172.15 rubles.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+1.11	191.00	4.394
Norilsk Nickel	+1.78	22394.00	4.138
Gazprom	+1.65	197.55	3.943
Lukoil	+1.80	5412.50	3.332
Surgutneftegas	+5.09	41.825	2.519

(71.8804 rubles – U.S. $1)

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