Russian stocks sag amid record low oil prices, prolonged sanctions

MOSCOW, Dec 21 (PRIME) -- Russian stocks decreased on Monday amid very low oil prices, depressed by the abolition of the U.S. oil export embargo, and on the back of prolongation of sanctions by the E.U.

The MICEX fell 0.13% to 1,716.91 and the RTS decreased 0.88% to 758.97.

“The fall of oil quotations to new record lows since 2004 created negative background for the Russian market today. A new reason for the decrease of oil quotations today was the news that the (U.S.) oil export embargo is finally abolished,” Vasily Tanurkov, an analyst at Veles Capital, said.

Taking into account the size of the oil price contraction, the stock market and the national currency were stronger than expected, Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said, adding that the news that the E.U. prolonged anti-Russian sanctions for six months was almost ignored by investors.

The fall of the dollar-denominated RTS was technically sped up by the ruble weakening to 71.25 against the U.S. dollar by closing bell. Brent fell to about U.S. $36.4 per barrel.

Metals and mining giant Mechel rose 1.19% after the company reached an amicable agreement with Sberbank over $273 million and 1.7 billion ruble debts.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.08	98.73	8.076
Gazprom	-0.57	131.50	3.759
Norilsk Nickel	-1.96	9048.00	2.379
Sberbank pref	+3.60	70.70	1.868
Lukoil	+0.49	2338.70	1.537

(71.3215 rubles – U.S. $1)

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