Stocks rise backed by rising oil prices, favorable environment - News Archive - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

Stocks rise backed by rising oil prices, favorable environment

MOSCOW, Feb 1 (PRIME) -- Russian stocks grew on Thursday in line with rising oil prices and advancing foreign trading floors, analysts said.

The MOEX Russia Index rose 0.55% to 2,302.57 and the RTS increased 0.84% to 1,293.10.

Investor mood was supported by higher oil prices and a positive external background. Oil prices have again rocketed to U.S. $70 per barrel in spite of yesterdays report of the U.S. Energy Department showing an increase of reserves above the American Petroleum institutes estimates, Sofya Kirsanova, an analyst at managing company Raiffeisen Capital, said.

She said that oil bulls could not have been stopped even by U.S. oil output increase by 41,000 barrels to over 9.9 million barrels per day.

It is evident that markets dont want to acknowledge negative news, and that investors think that higher demand for oil coupled with expectations of a quicker worlds economic growth supported by Caixins data on Chinas Purchasing Managers Index will absorb the higher supply from the U.S. completely, Kirsanova said.

Igor Kovalyov, an analyst at InstaForex group of companies, said that the local market was supported by a favorable external background during the day. Asia traded mixed but showed mostly positive dynamics. Europe traded in the green zone during the day. Further growth of the Brent prices supported national benchmarks, he said.

Andrei Kochetkov, an analyst at Otkritie Broker, said that common shares of Russias top bank Sberbank reached their historical record of 270.30 per paper during the day, but finished the trade with a 0.49% contraction to 263.20 rubles.

But fundamental factors show that Sberbank is significantly more expensive than the market, with the price to earnings ratio standing above 8 and dividend yield getting close to 2.2%, Kochtekov said.

Kirsanova also said that steelmakers Severstal and Novolipetsk Steel (NLMK) were among the leaders growing 2.47% to 941.80 rubles and 2.31% to 150.40 rubles, respectively. Prices for rolled steel were high in OctoberDecember 2017, so investors expect Severstal to publish strong financial results on Friday that will translate into high dividends. Both companies work on the same market, and investors expect good results from NLMK as well, Kirsanova said.

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

Company Change, % Last price, rbl Trading volume, bln rbl
Sberbank -0.49 263.20 19.395
Gazprom +1.42 145.39 5.434
Magnit -2.08 5219.00 3.477
Norilsk Nickel +0.27 11639.00 2.013
Lukoil +0.87 3760.50 1.900

(56.1840 rubles U.S. $1)

End

01.02.2018 19:11
 
 
Share |
To report an error select text and press Ctrl+Enter
 
 
Central Bank Official Rate
1W 1M 1Y
USD
EUR 74.9022 -0.6336 17 nov
USD 65.9931 -0.6228 17 nov
Stock Market Indices
1D 1W 1M 1Y
MICEX
rtsi 1134.93 +0.34 18:50 16 nov
micex 2372.67 -0.37 18:50 16 nov
Stock Quotes in RUR
1D 1W 1M 1Y
GAZP
gazp 153.16 -0.64 18:49 16 nov
lkoh 4824.00 -0.62 18:49 16 nov
rosn 420.85 -0.80 18:49 16 nov
sber 199.26 -0.44 18:49 16 nov
MICEX Ruble Trading
1D 1W 1M 1Y
USDTD
EURTD 74.9025 -0.2975 14:59 16 nov
USDTD 65.7225 -0.8775 17:44 16 nov