The Russian stock market closed in negative territory, reflecting high oil prices

MOSCOW, 16 Oct — RIA Novosti/Prime, Dmitry Mayorov. The Russian stock market by the close of trading increased amid the excess value of the oil 46.5 per barrel, traders said.

The leaders of growth remain paper of the electricity sector on expectations of high dividends.

The MICEX index on the day grew by 0,59% and amounted to 2028,92 points, the RTS index — on 0,94%, to 989,68 points, according to data from the Moscow exchange.

Up a bit

The Russian stock market on Wednesday showed mainly positive dynamics because of the rapid recovery of cost of oil the night before. In three days it rose by more than 8%.

The OPEC countries began to finalize the transaction for the reduction of oil production to 32.5-33 million barrels per day. The main guarantors of this agreement, in addition to Saudi Arabia, will become Iraq and Iran, who will have to freeze or reduce production volumes of oil, says Igor Arnautov from IK “Veles Capital”.

European markets fell during the day on the fall of the pharmaceutical sector. Us markets opened lower due to weak data. The index of U.S. producer prices for October showed zero growth against expectations of growth of 0.3%.

Against this background, stock market indices of the Russian Federation to the closure of the lost part of the daily growth.

Among the Russian shares the preferred shares of Tatneft (+5%) and paper “Russian grids” (+4,6%), RusGidro” (+3,7%). Investors expect growth dividend payout on the back of strong reporting.

Retreating shares of “Mechel” (normal is 1.3%, preferred shares 4.3%).

Forecasts and recommendations

It is not excluded the achievement of oil price levels of $ 48-49 per barrel in the near future, says Bogdan Zvarich of the company “Finam”.

“In turn, this will support the Russian assets will allow the ruble and the RTS index future to finish the evening session in positive territory. This will promote growth of our market tomorrow at the opening”, he added.

However, the speech of the fed Janet Yellen on Thursday before Congress could confirm expectations for a rate hike at the December meeting, which will exert some pressure on the stock markets, says Arnautov from IK “Veles Capital”.

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