Weak oil puts Russian stocks in line with ruble under pressure

MOSCOW, Nov 12 (PRIME) -- Russian stocks decreased on Thursday as weakening of the oil price depressed stocks of oil majors and the ruble fall particularly affected the RTS, analysts said.

The MICEX fell 0.03% to 1,739.96 and the RTS decreased 1.63% to 831.95.

“The significant weakening of the ruble against the U.S. dollar caused a substantial slump in the dollar-denominated RTS,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

The MICEX consolidated at the nearest level of support of 1,740 points, he said, adding that the technical dynamics of the RTS were significantly worse.

Oil stocks decreased due the oil price weakening caused by expectations of a growth in U.S. oil reserves and uncertainty over that country’s oil output amount, Mikhail Abramov, an analyst at Veles Capital, said. Oil major Rosneft fell 1.11%.

Exporters, including mineral fertilizer producers and metals companies, rose on the ruble weakening, Sofya Kirsanova, an analyst at investment company Raiffeisen Capital, said. In particular, fertilizer maker Uralkali rose 2.99% and PhosAgro grew 1.67%, while Magnitogorsk Iron and Steel Works (MMK) increased 3.15%.

The ruble, which fell to about 65.8 by the end of the trading session, followed oil dynamics caused by U.S. Energy Information Administration’s (EIA) worsened forecast for oil prices for 2015 and 2016, Mark Goikhman, an analyst at TeleTrade, said.

Cherkizovo Group fell 0.54% after the company announced that its net profit under US GAAP decreased 24% in January–September, Kirsanova said.

Gas giant Gazprom rose 1.19% on that news that the company develops cooperation with Kuwait Oil Company, Zerich Capital deputy CEO Andrei Vernikov said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.31	94.29	7.420
Gazprom	+1.19	136.60	6.876
Lukoil	+0.27	2555.00	2.050
Norilsk Nickel	+1.10	9475.00	1.676
Magnit	-1.16	11125.00	1.373

(64.5693 rubles – U.S. $1)

End