Russian stocks rise propelled by Novatek, Lukoil, Sistema

MOSCOW, Feb 6 (PRIME) -- The Russian stock market grew on Monday as foreign markets’ fears of a U.S. rate hike were cushioned by rising Novatek, Sistema and Lukoil, analysts said.

The MOEX Russia Index rose 1.07% to 2,272.37 and the RTS increased 0.46% to 1,007.15.

“There was profit taking on the foreign stock floors on Monday caused by worsening of geopolitical tensions and some negative macroeconomic signals. But the MOEX Russia Index rose to a new record since last September thanks to corporate stories,” Veles Capital analyst Yelena Kozhukhova said.

Independent gas producer Novatek was one of the gain leaders rising 4.64% to 1,078 rubles on the news that its net profit jumped by over 50% in 2022, plans to maintain the dividend policy and keep production of oil and gas flat in 2023, Kozhukhova said.

“The Russian market managed to step deeply into the green zone on the back of corporate news. The external background is not positive as the markets are pricing in the risks of a higher rate of the Federal Reserve System, while China expects further escalation of sanctions from the U.S. However, the news coming from Novatek, Sistema, and Lukoil improved the market mood in Russia,” Otkritie Research’s leading analyst for global research Andrei Kochetkov said.

Multi-industry holding Sistema rose by 3.93% to 13.581 rubles on the news it is considering acquisition of the Volkswagen plant in Kaluga, with Kazakhstan’s Allur acting as a partner. Sistema wants to relaunch the plant and maintain production of Volkswagen cars, Kochetkov said.

Lukoil and its Kazakh partners, the Energy Ministry and KazMunayGas, signed an agreement on development of the Kalamkas-Sea, Khazar, and Auezov fields. Given the limited opportunities for international operations, the deal with Kazakhstan is favorable for Lukoil, which gained 0.96% to 3,945 rubles, he said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+3.11	166.27	13.102
Gazprom	-1.04	159.20	3.973
Novatek	+4.64	1078.00	3.194
Polyus	+1.12	9352.00	2.520
Mostotrest	+39.65	142.30	1.944

(70.3847 rubles – U.S. $1)

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