Russian stocks rise supported by oil prices, favorable background

MOSCOW, Nov 22 (PRIME) -- Russian stocks grew on Tuesday supported by higher oil prices and a favorable external background, analysts said.

The MICEX rose 0.36% to 2,066.18 and the RTS increased 0.19% to 1,016.84.

“From the first hours of trading the local market continued its yesterday’s growth under the influence of a continuing increase of prices for oil futures,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

Andrei Kochetkov, an analyst at Otkritie Broker, said that Reuters quoted a representative of Nigeria in OPEC as saying that hopes for a November 30 oil production freeze agreement are high, and the organization is discussing the target level of 32.5 million barrels a day.

“This has only improved expectations that the oil production agreement may be reached at the upcoming summit,” Irina Rogova, an analyst at Forex Club group of companies, said.

Timur Nigmatullin, an analyst at investment company Finam, said that the local market was also supported by a favorable external background, as China’s CSI300 index increased 0.79% during the day, while the compound European index Stoxx600 has grown 0.33% as of 6.18 p.m. Moscow time.

“The pre–New Year rally of world stocks is unlikely to be hurt even by the upcoming key rate increase by the U.S. Federal Reserve System, as risky assets have already priced in the corresponding risks during the long preparation period,” Nigmatullin said.

Kochetkov said that oil prices helped the Russian oil and gas sector, and gas giant Gazprom and oil major Rosneft grew 0.27% and 0.37%, respectively.

Manzhos said that uncut diamond mining giant ALROSA rose 1.81% as investors were still pricing in the company’s strong financial results. ALROSA’s net profit under International Financial Reporting Standards (IFRS) soared to 116.945 billion rubles in January–September from 32.22 billion rubles in the same period in 2015, and revenue rose 48% to 255.563 billion rubles.

Shares of mobile operator MegaFon increased 1.98% in correction after eight consecutive days of contraction after its exclusion from the MSCI Russia index, Manzhos said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+1.31	155.00	10.617
Gazprom	+0.27	150.00	3.987
VTB	-0.42	0.06821	2.116
Lukoil	-0.48	3112.00	1.515
Norilsk Nickel	+1.38	10277.00	1.392

(64.3580 rubles – U.S. $1)

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