Russian stocks rise on ruble fall slowdown, Brent price rise

MOSCOW, Jan 14 (PRIME) -- Russian stocks rose on Wednesday as the ruble weakening slowed down, and the Brent price firmed slightly, analysts said.

The MICEX grew 1.39% to 1,554.46 and RTS rose 0.70% to 743.06.

“Trading volumes are still small after the New Year and Orthodox Christmas holidays and the market mainly grew on the fact that the ruble fall has slowed down and on the absence of bad news,” Sofia Kirsanova, analyst at Raiffeisen Capital, said.

Investors also welcomed a slight upward consolidation of the Brent price which exceeded U.S. $46.5 per barrel, Andrei Dirgin, head of Alfa-Forex analytic department, said.

Growth in the financial and banking sector was curbed by the statement of Sberbank’s CEO German Gref, who predicted a full-scale banking crisis in Russia if the Brent price stays at around $43-45 per barrel, the analyst said.

Gazprom rose 2.58% to 146.30 rubles and Rosneft grew 2.24% to 209.5 rubles after Prime Minister Dmitry Medvedev’s comments that Russia may help companies repay foreign debts.

Uralkali rose 2.66% to 139.1 rubles backed by its report of a 21% increase of chloride output in 2014.

Norilsk Nickel decreased 4.24% to 9,600 rubles as copper prices fell and because of market expectations that they will fall in the long run, Kirsanova said.

Some stocks also rose on Deputy Prime Minister Arkady Dvorkovich’s recommendation to companies to cut 2015 investment programs so that larger sums could be allocated to dividends, Kirsanova said. For example, Northwest IDGC, Russian Grids unit, rose 2.63% to 0.0273 rubles.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.43	60.05	8.109
Gazprom	+2.57	146.30	5.487
Norilsk Nickel	-4.24	9600.00	3.614
VTB	+2.42	11450.00	2.074
Lukoil	+2.62	2588.00	1.944

(64.8425 rubles – U.S. $1)

End