Russian stocks slide on Turkish sanctions

MOSCOW, Nov 30 (PRIME) – Economic restrictions on Turkey that exacerbated tensions in Moscow–Ankara relations after downing of a Russian fighter jet weighed on the Russian stock market on Monday, analysts said.

The MICEX fell 1.37% to 1,771.05 and the RTS decreased 1.07% to 847.10.

“It should be noted that the Russian market looks weaker than it could have been based only on external background. Its lag is explained by geopolitical risks connected with worsening of the Russo–Turkey relations,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

“Tensions on the geopolitical arena are still the main negative factor. Despite expectations, a meeting of Russian and Turkish presidents…did not happen, and many investors started to worry about new risks for the Russian economy,” Artyom Zvyagilsky, a leading analyst at MFX Broker, said.

From the very beginning of trade, the market reacted to negative geopolitical factors and weak dynamics of the Chinese stock indices. The news that the Open Society Institute, founded by George Soros, was acknowledged by Russia as an unwelcome association, only added fuel to the fire, Vasily Oleinink, a leading expert at investment company ITinvest, said.

“Such statements only worsen the investment climate in Russia and scare foreign investors away,” Oleinink added.

National flag carrier Aeroflot outperformed the market and gained 6.30% to 58.91 rubles due to a strong financial performance: the company swung to a 1.826 billion ruble net profit in January–September against a 3.563 billion ruble net loss in the same period of 2014.

Oil major Rosneft lost only 1.19% to 265 rubles as the company has closed a deal to sell a 20% stake in TAAS-Yuryakh Neftegazodobycha, an affiliate developing the Srednebotuobinskoye oil and gas condensate field in East Siberia, to U.K. giant BP. The stake was previously valued at $750 million.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.58	102.90	9.119
Gazprom	-1.88	138.00	5.581
Norilsk Nickel	-3.25	8920.00	4.347
Lukoil	-0.21	2534.10	2.972
Magnit	-0.07	12005.00	1.682

(66.2393 rubles – U.S. $1)

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