Russian stocks rise supported by lower ruble, higher oil

MOSCOW, Jan 26 (PRIME) -- Russian stocks increased on Thursday thanks to a weaker ruble and firmer oil prices, analysts said.

The MICEX rose 2.44% to 2,229.20 and the RTS increased 0.33% to 1,163.62.

Sofya Kirsanova, an analyst at managing company Raiffeisen Capital, said that the ruble fall supported the ruble-denominated MICEX index and at the same time undermined the dollar-denominated RTS index.

“Yesterday’s statement by the Finance Ministry that it will buy foreign currency from the market if the oil price is above U.S. $40 per barrel from February and until the end of the year frightened the market slightly. Analysts started to raise their forecasts for the ruble’s rate against the U.S. dollar for this year even under high oil prices,” Kirsanova said.

The Brent oil price rose 2.202% to $56.32 per barrel as of 6.09 p.m. Moscow time, according to the ICE exchange.

“The oil price dynamics only added to the positive mood of the market…The increase in oil prices was based by a temporary correction in the U.S. dollar rate. But hopes that the market will reach a balanced state also inspire some optimism,” Irina Rogova, an analyst at Forex Club group of companies, said.

Bogdan Zvarich, an analyst at investment holding Finam, said that share purchases were also supported by an upward opening of the U.S. markets, where Dow Jones and S&P500 grew 0.2% and 0.05%, respectively in the first half hour of trade.

Kirsanova said that Russian depositary receipts of aluminum giant UC RUSAL grew 9% to 345 rubles after a 3-day rally at the market of aluminum.

Andrei Kochetkov, an analyst at Otkritie Broker, said that Magnitogorsk Iron and Steel Works (MMK) outperformed the market and grew 3.81% to 37.37 rubles as the company announced an increase of steel production by 2.5% in 2016.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+2.07	173.79	9.680
Lukoil	+5.02	3376.50	4.780
Gazprom	+1.92	150.49	3.961
Norilsk Nickel	+2.67	9790.00	2.674
Magnit	+4.1	10020.00	2.080

(59.1489 rubles – U.S. $1)

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