Russian Stock Market Reaches New Low Since March, Despite Recovery in Certain Sectors

Strategic Insights -

The Russian stock market hit a new low since March for the MICEX index, due to the sale of risky assets amid the strengthening of the dollar on Forex. Despite this, shares in certain companies, including Mechel and Norilsk Nickel, rose on Wednesday. The MICEX stock index fell by 1.4% to 1636.86, while the RTS index fell by 2.4% to 1031.97.

The majority of ruble-denominated blue chips on the Moscow Exchange fell within 3%. The dollar rose by 37 kopecks to 49.94 rubles, while the euro fell by 0.6% to $1.108 on Forex.

Mechel shares rose by 9.3%, while preferred shares rose by 5.4%. Norilsk Nickel shares rose by 1.4% to 10,180 rubles ahead of the closing of the company's shareholder register for the payment of dividends for 2014 on May 21.

Decliners included major companies such as VTB, Gazprom, Lukoil, Magnit, MTS, Novatek, Rosneft, Rostelecom, Sberbank, and Surgutneftegas. Second-tier decliners on the Moscow Exchange included Bashneft, Pharmstandard, Rusal, and Aeroflot.

Key Takeaways:

  • The Russian stock market reached a new low since March for the MICEX index, falling by 1.4% to 1636.86.
  • Mechel shares rose by 9.3%, with preferred shares rising by 5.4%, amidst news of the company.
  • Norilsk Nickel shares rose by 1.4% to 10,180 rubles ahead of the closing of the company's shareholder register for the receipt of dividend payments for 2014.
  • VTB, Gazprom, Lukoil, Magnit, MTS, Novatek, Rosneft, Rostelecom, Sberbank, and Surgutneftegas were among the decliners.
  • Mechel's rise in shares was the largest increase among all companies listed on the Moscow Exchange.
  • Combined trading volume on the main Moscow Exchange market was 27.48 billion rubles for the day.

Statistics:

  • MICEX index: 1636.86 (fell 1.4%)
  • RTS index: 1031.97 (fell 2.4%)
  • Dollar: rose by 37 kopecks to 49.94 rubles
  • Euro: fell by 0.6% to $1.108 on Forex
  • Combined trading volume: 27.48 billion rubles for the day
  • Mechel shares: rose by 9.3%
  • Mechel preferred shares: rose by 5.4%
  • Norilsk Nickel shares: rose by 1.4% to 10,180 rubles

Sources:

  • Interfax, May 20.