MOSCOW, Nov 1 (PRIME) – The Russian stocks grew on Friday as the global risk appetite increased following improvements in the Chinese economy and softening of the monetary policy by the U.S. Federal Reserve System (Fed), while some local corporate stories also helped the market, analysts said.
The MOEX Russia Index rose 1.26% to 2,930.40 and the RTS increased 2.29% to 1,455.44.
“The Russian stock market started the day with uncertainty, but later Europe opened, where investors bought on good statistics from China. Yesterday the official PMI showed contraction of industrial activity for a sixth consecutive month, but today, the Caixin PMI index that largely takes into account small and medium-sized businesses showed improvement in the situation. The appetite for risk recovered,” Andrei Kochekov, senior analyst at Otkritie Broker, said.
Yaroslav Kabakov, director for strategies at investment company Finam, said that the Russian stock market priced in positive news from the U.S. market even better than the U.S. floors.
“Taking into account concerns over the slowdown of the global economic growth, investors saw the news about softening of the U.S. monetary policy as a good pretext to buy risk,” Kabakov said.
Sofya Kirsanova, portfolio manager at managing company Raiffeisen Capital, said that the moderately optimistic mood that prevailed on the foreign bourses supported the Russian market, but rallies in some Russian securities, prompted by corporate news or rumors, also helped the market to grow.
“In spite of correction in most cyclical shares of metals companies, other securities showed growth, including non-cyclical shares in the consumer, telecommunications, or financial sectors, and oil and gas,” Kirsanova said.
The Brent oil price gained 1.747% to U.S. $60.68 per barrel. Kochetkov said that the oil price grew after suspension of the Keystone Pipeline in the U.S., which supported shares of Russian oil companies. Ordinary shares of Surgutneftegas gained 7.57% to 46.255 rubles.
Arseny Dadashev, director of the Academy for Management of Finance and Investment, said that household aplpiances and electronic goods seller M.Video-Eldorado grew 5.50% to 448.80 rubles after the board of directors recommended paying the company’s first dividends since 2016.
Below are the MOEX Russia Index’ five most active stocks on Friday:
| Company | Change, % | Last price, rbl | Trading volume, bln rbl |
|---|---|---|---|
| Gazprom | +1.46 | 263.79 | 13.332 |
| Sberbank | +0.64 | 236.40 | 9.221 |
| Surgutneftegas | +7.57 | 46.255 | 6.051 |
| Lukoil | +1.71 | 6021.00 | 4.782 |
| Norilsk Nickel | +1.67 | 18186.00 | 3.545 |
(63.7748 rubles – U.S. $1)
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