Russian stocks rise on oil price rebound, Fed’s key rate increase

MOSCOW, Dec 17 (PRIME) -- The Russian stock market rose on Thursday as the oil price and global stocks increased after the U.S. Federal Reserve System (Fed) raised the key rate, but the increase was limited by the ruble weakening, analyst said.

The MICEX rose 1.50% to 1,780.97 and the RTS increased 0.90% to 792.07.

“At the end of the day the Russian market continued growth in line with correction of oil. The dollar strengthened against the ruble. Like the global stock exchanges, the Russian market welcomed the news that the Federal Reserve System increased the band of interest rates to 25-50 basis points,” Mikhail Abramov, an analyst at Veles Capital, said.

The rise of the dollar-denominated RTS was technically limited by the ruble weakening.

Oil major Rosneft grew 3.44% to 258.7 rubles on the news that the government may privatize a 19.5% stake in the company in 2016, Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

Rosneft was also supported by the closing of a deal to sell its 50% stake in Polar Lights, its joint venture with ConocoPhillips, InstaForex analyst Igor Kovalyov said.

Aluminum giant RUSAL, whose stocks will be excluded from the RSX index on Friday, fell 2.30% to 220.5 rubles per Global Depositary Receipt (GDR), Abramov said.

Metals producer Norilsk Nickel increased 3.75% to 9,450 rubles after its CEO Vladimir Potanin said that the company may postpone some long-term investment projects in order to keep dividend payouts on the current level, Manzhos said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+1.27	103.75	12.512
Gazprom	+2.53	137.90	6.225
Norilsk Nickel	+3.75	9450.00	3.515
Lukoil	+0.50	2427.00	2.964
Rosneft	+3.44	258.70	2.344

(70.4012 rubles – U.S. $1)

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