Russian Stocks Decline Amid Falling Crude Prices

Strategic Insights -

The Russian stock market experienced a decline on Friday, influenced by falling crude prices, but bank shares managed to post slight gains. The RTS index dropped 1.06% to 950.24 points, while the MICEX edged down 0.31% to 974.07 points. Despite the overall market decline, bank shares showed resilience, with VTB Bank and Sberbank shares rising 1.7% and 1.9%, respectively. Sberbank's rise was attributed to news of potential market entry in China and India through bank purchases or partnerships.

Key Takeaways:

  • The RTS index declined 1.06% to 950.24 points on Friday, while the MICEX edged down 0.31% to 974.07 points.
  • Bank shares, including VTB Bank and Sberbank, posted slight gains, with VTB Bank rising 1.7% and Sberbank increasing 1.9%.
  • Sberbank's rise was attributed to news of potential market entry in China and India through bank purchases or partnerships.
  • Gazprom, MMC Norilsk Nickel, Rostelecom, and Surgutneftegas shares fell, while Lukoil and Transneft shares rose.
  • WTI futures for August fell 0.6% to $66.3 per barrel on Friday, influenced by a $2.58 decline yesterday.
  • Second-tier stocks, such as Sollers and OGK-2, experienced significant declines, while Uralkali and Sibirtelecom shares rose substantially.

Statistics:

  • RTS index: 950.24 points (down 1.06% on Friday)
  • MICEX: 974.07 points (down 0.31% on Friday)
  • RTS futures: Moderately negative outlook on the market
  • WTI futures for August: $66.3 per barrel (down 0.6% on Friday)
  • RTS Classic Market trading volume: $2.1 million (on Friday)
  • RTS Standard turnover: $193.19 million (on Friday)
  • MICEX volume: 42.08 billion rubles (led by Sberbank with 15.8 billion rubles)

Sources:

  • Interfax, "Falling crude prices drag down Russian stocks; bank shares see rise" (July 3)