Russian Stocks Rally on Rising Crude Prices and Optimistic Investor Sentiment

Strategic Insights -

The Russian stock market experienced a significant surge on Thursday, driven by rising crude prices and a mix of positive global market trends, as well as poor U.S. economic statistics that failed to deter investors. The RTS index rose 1.77% to 547.63 points, while the MICEX gained 6.25% and rose to 672.3 points. Oil companies were the main beneficiaries, with Lukoil, Gazprom, Tatneft, Surgutneftegas, Rosneft, and Gazprom Neft recording significant gains.

Key Takeaways:

  • The RTS index rose 1.77% to 547.63 points, while the MICEX gained 6.25% and rose to 672.3 points.
  • Oil companies led the gains, with Lukoil soaring 11.2%, Gazprom rising 5.8%, Tatneft increasing 8.9%, Surgutneftegas gaining 6.5%, Rosneft rising 10%, and Gazprom Neft increasing 14.9%.
  • VTB Bank, Sberbank, and MMC Norilsk Nickel also saw significant gains, with their shares rising 2.6%, 3.7%, and 7.5% respectively.
  • Polyus Gold's shares remained stable despite being in negative territory, while Polymetal's shares fell 3.3% in response to lower gold prices.
  • European stock indices rose 2%-3% on Thursday, and U.S. markets opened with a 1%-2% gain after the U.S. government promised to provide banks with more liquidity.
  • The market ignored poor U.S. economic statistics, including a 36,000 increase in jobless claims, a 5.2% decline in orders for U.S. long-term durable goods, and a 10.2% drop in new home sales.

Statistics:

  • RTS index rose 1.77% to 547.63 points.
  • MICEX gained 6.25% and rose to 672.3 points.
  • Lukoil rose 11.2%.
  • Gazprom rose 5.8%.
  • Tatneft rose 8.9%.
  • Surgutneftegas gained 6.5%.
  • Rosneft rose 10%.
  • Gazprom Neft increased 14.9%.
  • VTB Bank rose 2.6%.
  • Sberbank rose 3.7%.
  • MMC Norilsk Nickel rose 7.5%.
  • European stock indices rose 2%-3%.
  • U.S. markets opened with a 1%-2% gain.
  • Jobless claims rose by 36,000.
  • Orders for U.S. long-term durable goods fell 5.2% in January.
  • New home sales plummeted 10.2% in January.

Sources:

  • Interfax, "Russian stocks rally on rising crude prices; poor U.S. stats don't scare off bulls", February 26.