Russian stocks slide on strong US macro statistics

MOSCOW, Nov 6 (PRIME) -- Russian stocks fell on Friday as investors sold risky assets on strong U.S. macro statistics, which could become a prelude to the U.S. Federal Reserve System (Fed) raising its rates in December and decided to sell risky assets, analysts said.

The MICEX fell 0.67% to 1,754.36 and the RTS decreased 2.61% to 854.34.

“The U.S. dollar soared after the superpositive report on U.S. employment. The U.S. created 271,000 jobs in October, higher than the expected 181,000, and unemployment fell to 5.0% from 5.1%. An increase of an average hourly wage by 0.4% on the month after a zero growth in September is the most interesting thing,” Andrei Dirgin, a head of Alfa-Forex analytical department, said.

The last factor may lead to higher consumer spending and inflation. And this factor may allow the Fed to start toughening of its monetary policy already in December, Dirgin said.

“The statistics was way better than expected…As a result, the possibility of the Fed raising rates at its next meeting has grown significantly, which ended with sales in highly risky assets. The Brent oil futures plunged below U.S. $48 per barrel and supported bears,” Bogdan Zvarich, an analyst at investment company Finam, said.

Bank UralSib was again one of the market growth leaders, soaring 87.65% on the news that the Deposit Insurance Agency appointed businessman Vladimir Kogan to bail it out and to acquire at least a 75% stake in it. On Thursday, a spokesman for Kogan said the businessman is ready to buy 82% in the bank.

Magnitogorsk Iron and Steel Works outperformed the market and grew 0.82% as its net profit soared to U.S. $546 million in January–September from $106 million in the same period of 2014 as calculated under International Financial Reporting Standards (IFRS).

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.48	94.09	10.073
Gazprom	-2.28	137.75	4.887
Lukoil	+0.89	2511.80	3.958
Norilsk Nickel	-0.70	9513.00	2.597
Magnit	+0.24	11496.00	1.412

(63.3991 rubles – U.S. $1)

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