Russian stocks rise on stronger oil, ruble, key rate kept at 11%

MOSCOW, Oct 30 (PRIME) -- Russian stocks increased on Friday supported by the oil price strengthening and the rise of the national currency caused by both the oil growth and the central bank’s decision to keep the key rate, analysts said.

The MICEX rose 0.17% to 1,711.53 and the RTS increased 0.71% to 845.54.

The market was supported by the oil price, which rebounded to about U.S. $49 per barrel of Brent by the end of the trading session, Bogdan Zvarich, an analyst at Finam, said.

The central bank’s decision to keep the key rate at 11% due to inflationary risks quite supported the ruble, which rebounded to 63.8 against the U.S. dollar by the end of the trading session, Vasily Tanurkov, a deputy head of Veles Capital’s department for stock market research, said.

The ruble strengthening, also secured by the oil prices dynamics, technically supported the dollar-denominated RTS.

Debt-ridden metals and mining giant Mechel rose 8.16% to 64.79 rubles on the news that the company may sell the Elga coal deposit to Gazprombank, Anton Startsev, a senior analyst at Olma, said.

Russian metals companies surged in line with Indian metals makers, in particular, Magnitogorsk Iron and Steel Works (MMK) rose 5.89% to 24.07 rubles and steel maker Severstal increased 1.50% to 742 rubles, Tanurkov said.

Top lender Sberbank rose 2.18% to 90.53 rubles rubles, supported by the central bank’s decision to keep the key rate, the analyst said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+2.18	90.53	7.672
Gazprom	-0.26	135.75	3.233
Lukoil	-0.92	2320.00	1.910
MMK	+5.89	24.07	1.525
Severstal	+1.50	742.00	1.507

(64.1686 rubles – U.S. $1)

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