Stocks decrease on news about new Russian sanctions

MOSCOW, Nov 23 (PRIME) – The Russian stocks contracted on Monday on the news about new sanctions the country introduced, analysts said.

The MOEX Russia Index fell 0.13% to 3,047.06 and the RTS decreased 0.47% to 1,256.81.

“The decrease of the Russian indices at the end of the trading session is a reaction to the news about Russia’s sanctions against the U.K., and about plans of Moscow and Minsk to ramp up sanctions against the E.U. states jointly,” investment company Freedom Finance’s analyst Valery Yemelyanov said.

“The impact of the factor will unlikely be prolonged, since restrictions are of an individual character and they are not economic. The market will return to its main trend already on Tuesday.”

Moscow introduced an entry ban for 25 U.K. officials in retaliation for London’s sanctions over the Magnitsky act.

Yemelyanov also said that the background for the Russian market was positive as the U.S. stock indices grew on the news that AstraZeneca finished trials of its COVID-19 vaccine with efficacy above 90%. The oil market also rose on stabilization of coronavirus contractions in Europe and the U.S. and higher purchasing industry managers’ indices in Europe and the U.K.

Veles Capital analyst Yelena Kozhukhova said that the Russian indices lost most they gained during the day, but the MOEX Russia Index managed to its highest of 3,094 since February, while the RTS Index showed the highest level of 1,287 since.

“The retreat from the psychologically important levels is a worrying factor for the buyers that may signal the beginning of a downward correction. But investors will have no reason for sales, if the external background remains positive. The guidance for the MOEX Russia Index for the next trading day is 3,020–3,110,” Kozhukhova said.

She also said that ordinary and preferred shares of gold producer Seligdar rose 1.05% to 49.92 rubles and 3.72% to 48.75 rubles, respectively, in spite of contraction of gold prices. The interest in Seligdar can be explained by expectations of dividends for January–September, as the company will pay 2.25 rubles per preferred share and 2.55 rubles per ordinary share.

But shares of other gold producers fell following the gold prices -- Polyus lost 5.31% to 14,592 rubles and Polymetal International fell by 3.84% to 1,629.50 rubles, Kozhukhova said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.24	238.84	16.966
Lukoil	+0.54	4975.00	8.139
Gazprom	+0.03	183.27	6.932
Norilsk Nickel	+0.95	20932.00	6.823
Sistema	-2.69	32.53	5.536

(76.0129 rubles – U.S. $1)

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