Russian stocks rise on positive foreign background

MOSCOW, Aug 1 (PRIME) -- Russian stocks increased on Tuesday supported by growth on global floors and ignoring a fall in oil prices, analysts said.

The MICEX grew 1.07% to 1,940.14 and the RTS increased 0.70% to 1,014.24.

“Russian stock indices are trading on the positive territory from the start of the session having managed to abstract away from (the U.S.) sanctions and focus on the favorable foreign background,” InstaForex analyst Igor Kovalyov said.

The stock market was also supported by Russia’s Manufacturing Purchasing Managers' Index (PMI) rising to 52.7 in July from 50.3 in June, he said.

The purchasing activity was curbed by correction of oil prices, which switched to a decline trend after touching 2-month highs around the U.S. $53 per barrel notch, Kovalyov said.

Otkritie Broker analyst Andrei Kochetkov said the foreign background remains quite positive on the back of expensive oil and strong statistics from China.

“The wave of the negative sentiment connected with another round of the diplomatic row between Russia and the U.S. could not significantly squeeze the market,” he said.  

Gas giant Gazprom gained 1.63% after reporting that its gas output rose 19.3% on the year to 266.3 billion cubic meters in January–July.

National flag carrier Aeroflot rose 2.33% despite reports that its net profit plunged about 89% on the year to 872 million rubles in January–June, as calculated under Russian Accounting Standards.

Power producer Wholesale Generating Company-2 (WGC-2), whose power output increased 4.7% on the year to 32.6 billion kilowatt-hours (kWh) in January–June, lost 0.96%.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+1.08	166.31	9.251
Gazprom	+1.63	117.99	3.424
Lukoil	+2.39	2864.50	2.158
Norilsk Nickel	+1.4	9055.00	2.039
ALROSA	+1.59	84.98	1.912

(60.0633 rubles – U.S. $1)

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