Russian stocks decrease on falling oil prices, Brexit decision

MOSCOW, Jun 27 (PRIME) -- Russian stocks decreased on Monday on the back of falling oil prices and negative moods on European stock markets, which continued declining on the U.K.’s decision to leave the E.U., analysts said.

The MICEX fell 2.26% to 1,841.73 and the RTS decreased 2.60% to 888.78.

“We see that sales of Russian stocks continue despite the fact that ruble-denominated MICEX was demonstrating rather neutral dynamics during the first hour of trading,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

“Pessimism on foreign markets remains the key reason for sales of Russian shares. The oil price, which is again trying to reach the level of U.S. $48 (per barrel), does not add optimism as well, which is reflected in shares of the oil and gas sector,” Otkritie Capital analyst Andrei Kochetkov said.

Gas giant Gazprom fell 1.93%, oil majors Rosneft and Lukoil decreased 1.68% and 3.45%, respectively, and oil and gas company Surgutneftegas went down by 2.36%.

Shares of power utilities were among growth leaders, Kochetkov said. The Federal Grid Company of Unified Energy Systems (FGC UES) grew 5.48%, Mosenergo increased 5.7%, and E.On Russia rose 0.59%.

Metals companies and banks were also among outsiders due to expectations of an economic decline in Europe, Kochetkov said. Steel producer Severstal fell 3.27%, Magnitogorsk Iron and Steel Works (MMK) went down 3.34%, and top lender Sberbank decreased 5.4%.

Hydropower giant RusHydro, whose shareholders approved paying 15 billion rubles, or about 50% of its net profit under Russian Accounting Standards, in dividends for 2015, decreased 1.31%.

Flagship carrier Aeroflot fell 0.5% as its shareholders approved paying no dividends for 2015 because of a net loss.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-5.40	126.20	15.219
Gazprom	-1.93	138.52	3.342
Lukoil	-3.45	2631.00	2.138
Rosneft	-1.68	328.05	1.849
Sberbank pref	-4.41	87.00	1.501

(65.5287 rubles – U.S. $1)

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