Russian stocks slide on low oil price, ignore cbank’s rate decision

MOSCOW, Sep 11 (PRIME) -- Russian stocks slightly decreased on Friday following downward dynamics of the oil prices and external foreign background, as the expected central bank’s decision to keep the key rate at 11% provided no significant impact on the market, analysts said.

The MICEX edged down 0.05% to 1,718.06 and RTS decreased 0.17% to 799.10.

“The central bank today has kept the key rate intact at 11% for the first time in the current year. It was not a surprise for the major part of the market players. The authority stressed out growing inflation risks and a threat of the economy cooling down further,” Igor Kovalyov, an analyst at InstaForex, said.

Besides keeping the key rate, the central bank also worsened its forecast for gross domestic product (GDP) decline in 2015 to 3.9–4.4% with an average annual price for Urals blend oil at U.S. $52 per barrel from a 3.2% decline with a $60 Urals price expected earlier, and worsened its forecast for 2015 inflation to 12–13% from 10.8%.

“Russia’s central bank has not said anything new on Friday…The market was not significantly impressed by the regulator’s comments and continued to follow prices for the crude,” Dmitry Gurkovsky, an analyst at RoboForex, said.

The price of October futures for the Brent oil contracted 3.515% to U.S. $47.23 per barrel as of 6.03 p.m. Moscow time, according to the ICE exchange. Goldman Sachs Group revised its forecast for average annual Brent oil price for 2015 to $53.7 per barrel from $58.2, and for 2016 to $49.5 per barrel from $62.

The corresponding decrease in the ruble’s exchange rate dragged down the U.S. dollar–denominated RTS index, but kept the ruble-denominated MICEX index closer to zero, Veles Capital said in a research note.

Razgulay Group grew 11.11% after business daily Kommersant reported citing a source at the company that Vnesheconombank plans to determine the way to restructure 40 billion rubles of Razgulay’s debts, Vitaly Manzhos, senior analyst at Bank Obrazovanie, said.

Common and preferred shares of Mechel looked weaker than the market and lost 3.75% and 3.69%, respectively. The company’s net loss narrowed 63% on the year to $239 million in January–June under U.S. GAAP, which dissatisfied investors, Manzhos said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.27	74.10	4.219
Gazprom	-0.41	142.40	3.605
Norilsk Nickel	-0.56	10870.00	2.083
Magnit	-0.13	11405.00	1.554
Lukoil	-0.06	2487.60	1.328

(68.4961 rubles – U.S. $1)

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