Russian stocks rise to local highs on Brent, ruble strength

MOSCOW, Feb 13 (PRIME) -- Russian stocks broke through a psychologically important level of 900 for the first time since December on Friday supported by a higher Brent price and a firming ruble, analysts said.

The MICEX rose 1.96% to 1,838.18 and the RTS increased 6.05% to 914.05.

“The fact that the price for April futures for Brent oil exceeded U.S. $60 for the first time since December undoubtedly was the key event of the day,” Timur Nignatullin, analyst at Finam, said.

The mineral extraction tax payments which are to be made in rubles by February 25, was another factor of the ruble increase which backed the stock market, Nigmatullin said.

Anton Fomin, analyst at Insta-Forex, said another reason for optimism was the ceasefire agreement for Ukraine struck Thursday.

Vitaly Manzhos, analyst at Nord-Capital, said that such growth will inevitably lead to profit taking soon.

Rosneft grew 5.89% to 290.2 rubles due to an early repayment of a 7 billion ruble loan raised to buy TNK-BP.

FGC UES rebounded 16.82% to 0.0677 rubles as the ruble strengthened, as the bulk of the company revenues is denominated in rubles.

Pharmacy Chain 36.6 grew 55.60% to 21.8 rubles on market expectations that the company will close a deal to merge with A.v.e. Group.

Only the metals and mining sector fell 0.83% following falling iron ore and coking coal prices caused by excessive production and China’s lower demand, while the power sector rebounded 6.18% after a recent fall on the ruble weakening.

Analysts said that the Brent price increase was caused by fundamental factors that may secure a positive trend in the future and support the ruble, which will result in further stock market gains.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+5.04	69.97	23.686
Gazprom	+2.98	162.44	13.502
VTB	-1.89	41.47	3.420
Lukoil	+3.33	12216.00	3.094
Norilsk Nickel	+0.57	3155.60	2.949

(66.0994 rubles – U.S. $1)

End