Russian stocks sink on strong ruble, Sistema’s case crt ruling

MOSCOW, Dec 18 (PRIME) -- The Russian stock market declined on Monday as a strong ruble averted investors from purchases and a ruling on a case against multi-industry holding Sistema by a court of appeals disappointed investors, analysts said.

The MOEX Russia Index fell 0.44% to 2,134.58 and the RTS dropped 0.03% to 1,147.91.

“There has been every chance for growth of risky assets at the start of the new week after cautious steps by central banks last week and in anticipation of (U.S.) tax reform votes. The key foreign stock exchanges have been in the positive zone today, triggering a positive start on the Russian market,” InstaForex analyst Igor Kovalyov said.

“In the second half of the day, the MOEX Russia Index did not manage to remain in the green zone as a ruble strengthening delayed the prospects of returning of the benchmark to the level above 2,150,” Kovalyov said.

Veles Broker analyst Yelena Kozhukhova said that the ruble grew on the back of a tax payment period, while the U.S. dollar was weaker than the other key currencies.

Otkritie Broker analyst Andrei Kochetkov said that a start of a decrease of the MOEX Russia Index coincided with a ruling by the court of appeals to uphold charging Sistema 136.3 billion rubles in favor of Bashneft. “After the news appeared, the indices went to the red zone because corporate conflicts of this kind certainly do not add to the attractiveness of Russian assets.”

Kovalyov said that Russia’s industrial output figures slightly limited the optimism on the market. The production fell at the fastest pace since 2000, partially due to Russia’s participation in the OPEC plus nonmember oil output reduction agreement.

Sistema was sliding due to the court ruling. Mobile operator MTS was also under a pressure, falling 1.13%. According to Kochetkov, Sistema may sell its controlling stake in it on unfavorable conditions.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.38	227.4	5.576
Gazprom	-0.92	134.25	4.181
Sistema	-12.62	9	1.542
Magnit	-1.93	6287	1.513
Norilsk Nickel	+0.8	10680	1.465

(58.8987 rubles – U.S. $1)

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