Ukraine’s tensions, weak ruble drag Russian stock market down

MOSCOW, Feb 27 (PRIME) -- The Russian stock market tumbled on Thursday depressed by social and political tensions in Ukraine, a falling ruble and slipping prices for oil, the mainstay of the country’s economy, analysts said.

The MICEX plunged 1.42% to 1,448.70, and the RTS tumbled 1.95% to 1,260.95.

“Unlike the usual guidance of the Russian market by Western markets, events inside the country and in its neighbor were in the limelight today. One of the factors of the fall was a continued weakening of the ruble against major foreign currencies. One more negative signal came from a fast-moving development of events in Ukraine,” Nord Capital analyst Vitaly Manzhos said.

The weighted average rate of the ruble with tomorrow settlement plunged 26.29 kopecks against the U.S. dollar to 36.0501.

The banking sector was among the outsiders due to the weak ruble, Ivan Fomenko, director of Absolut Bank’s trust management department, said in a note. Quotes of the country’s largest bank, Sberbank plunged 2.41% to 90.07 rubles and VTB by 4.07% to 0.0422 rubles.

“Many foreign investors don’t rule out Russia’s military invasion onto (the Ukrainian) territory. These ideas are provoking a higher capital outflow. That is why the state of the national stock and currency markets depends for some time on the situation in the neighboring state,” BCS Express analyst Ivan Kopeikin said.

“Additional pressure on the stock market is exerted… by falling oil quotes and a downward correction of developed stock markets.”

The Brent oil futures for April 14 decreased 0.73% to U.S. $108.75 as of 7 p.m. Moscow time.

Germany’s DAX lost 0.94%, and the U.K.’ FTSE index dropped 0.14% as of 7 p.m. Moscow time.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Gazprom	-1.74	141.00	11.567
Sberbank	-2.41	90.07	10.931
Surgutneftegas, pref	-1.73	27.04	3.179
Norilsk Nickel	+0.09	5870.00	2.972
Lukoil	-0.50	1999.00	2.506

(35.7872 rubles – U.S. $1)

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