Stocks rise as US, China coordinate 1st stage of trade deal

MOSCOW, Dec 13 (PRIME) – The Russian stocks grew on Friday as the market was cheered by advance in the trade negotiations between China and the U.S., analysts said.

The MOEX Russia Index rose 0.46% to 2,996.63 and the RTS increased 0.30% to 1,501.42.

“From the first few minutes of trade, the market started pricing in the optimistic mood of foreign bourses linked to the information about the agreements between the U.S. and China on the first phase of their trade deal,” Andrei Kochetkov, senior analyst at Otkritie Broker, said.

China’s Vice Minister of Commerce Wang Shouwen said that the two countries coordinated the first stage of their trade deal, including protection of intellectual property, transfers of technologies, agriculture, and food. The two countries also agreed not to introduce import duties on goods that they were to impose from Sunday.

Kochetkov also said that investors bought shares of the companies that would win from easing of the trade tensions between China and the U.S. like metals companies, with Magnitogorsk Iron and Steel Works (MMK) growing 2.46% to 41.60 rubles, steelmaker Novolipetsk Steel (NLMK) gaining 1.80% to 137.90 rubles, and metals giant Norilsk Nickel rising 2.88% to 19,747 rubles.

Yelena Kozhukhova, analyst at Veles Capital, said that the Russian market stayed in the green zone as appetite for risk at global bourses remained.

The oil prices gained more than 1.5% on the trade negotiations, which are expected to boost demand for oil.

Kochetkov also said that shares of electronic goods and household appliances M.Video were among the loss leaders falling 2.50% to 585 rubles due to a dividend cut-off.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Gazprom	-0.39	249.50	10.463
Sberbank	+0.07	241.21	8.026
Lukoil	+0.52	6168.00	7.052
Norilsk Nickel	+2.88	19474.00	5.318
Surgutneftegas	-1.44	47.505	4.239

(63.2257 rubles – U.S. $1)

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