Weaker oil, negative environ, sanctions risks send stocks down

MOSCOW, Aug 1 (PRIME) -- The Russian stock market edged down on Thursday discouraged by a negative external environment, decreasing oil and emerging sanctions risks, analysts said.

The MOEX Russia Index slid 0.37% to 2,729.42 and the RTS lost 1.00% to 1,346.40.

“The Russian stock indices fell at the opening in light of a negative external environment, and then continued decreasing after a short upward correction. The MOEX Russia Index was additionally hurt by significant ruble weakening,” BCS Broker expert Dmitry Babin said.

The U.S. Federal Reserve’s decision to cut the key interest rate by 0.25% was expected by the market, but the regulator’s comments were disappointing and sparkled investors’ escape from risky assets, he added. 

In the second part of the day, the global markets recovered, but the Russian benchmarks were discouraged by a substantial decline in crude prices with the Brent oil price losing more than 1.5% to below U.S. $64 per barrel, and mounting sanctions risks, Babin also said.

Otkritie Broker analyst Andrei Kochetkov said that top bank Sberbank was among the biggest losers falling 1.71% to 229.5 rubles as the stock followed the market dynamics and because of a weak financial report under International Financial Reporting Standards (IFRS).

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.71	229.5	12.919
Gazrpom	-1.11	234.28	7.356
Lukoil	-0.11	5220.5	3.863
Tatneft	+1.59	755	1.901
Norilsk Nickel	-1.35	14448	1.327

(63.4172 rubles – U.S. $1)

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