Stocks close to flat on mixed background with sanction fears

MOSCOW, Mar 4 (PRIME) -- Russian stocks closed almost flat on Monday as the positive mood of global investors was supported by comment of U.S. President Donald Trump about an upcoming end to a trade war with China, while concerns over new anti-Russian sanctions neutralized the positive effect, analysts said.

The MOEX Russia Index fell 0.17% to 2,473.79 and the RTS decreased 0.13% to 1,185.83.

“The external optimism had almost no impact on the Russian market. The dispute between China and the U.S. may be solved at the end of March, which is a positive factor for the national exporters. But uncertainty around the U.S. restrictive policy against Russia still curbs any significant growth of national assets,” Andrei Kochetkov, Otkritie Broker’s analyst, said.

Vasily Oleinik, expert at investment company Finam, said that Trump’s announcement of an upcoming amicable deal with China and a possibility of abolishment of all trade duties spurred up the global markets although the growth was only supported purely by verbal interventions.

“The most interesting thing here is that deficit of the U.S. budget is at record highs, and lifting of all duties from China is a failure in the trade war for Trump and a strong blow to the U.S. economy and the stock market,” Oleinik said.

Even growing oil prices were unable to provide significant support to Russian shares, as foreigners’ fear of new sanctions trigger flight from Russian assets, Oleinik added.

Anastasia Popova, stock market expert at BCS Broker, said that national flagship carrier Aeroflot was the gain leader of the transport sector with its shares rising 1.65% to 98.36 rubles on expectations of publication of robust financial indicators for October-December.

Shares of steelmaker Novolipetsk Steel (NLMK) outperformed the market and gained 2.73% to 162.04 rubles after the board of directors recommended paying 5.8 rubles per share, or a total of around 34.76 billion rubles, in dividends for October–December 2018, Popova said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.50	205.50	6.528
Gazprom	-1.47	154.40	2.672
Lukoil	+0.84	5546.50	2.344
Norilsk Nickel	-2.17	13794.00	2.256
ALROSA	-1.32	93.65	1.170

(65.7956 rubles – U.S. $1)

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