Russian Stocks Rise as Gazprom and Rosneft Lead Rally

Strategic Insights -

Russian stocks rose on Friday as Gazprom and Rosneft led the rally, with the MICEX index gaining 0.96% to 1,766.53 points and the RTS index up 0.6% to 1,928.58 points. The MICEX index rose 1.8% for the week and the RTS index was up 2.3%. The gain was attributed to positive earnings reports from Rosneft, which published better-than-expected financial results for the fourth quarter of 2010 and the full year.

Key Takeaways:

  • Gazprom rose 3% to 213.3 rubles, a new high for 2011, driven by positive earnings reports and expectations for increased energy demand.
  • Rosneft gained 1.8% to 257.3 rubles after publishing better-than-expected financial results for the fourth quarter of 2010 and the full year, indicating a strong performance in the Russian energy sector.
  • Lukoil, Surgutneftegas, and Tatneft also showed strong gains, with Lukoil adding 0.7%, Surgutneftegas up 1.8%, and Tatneft surging 3%.
  • Razgulay, IDGC of North Caucasus, AFK Sistema, and Uralsvyazinform were among the top gainers in the second tier, with Razgulay adding 11% and IDGC of North Caucasus rising 3.3%.
  • Mosenergosbyt, RTM, and PIK Group were among the decliners, with Mosenergosbyt down 2.7% and RTM losing 2.5%.
  • Volume totaled $6.36 million on RTS Classica, $603.35 million on RTS Standard, and 64.749 billion rubles on MICEX.

Statistics:

  • The MICEX index gained 0.96% to 1,766.53 points and the RTS index was up 0.6% to 1,928.58 points.
  • The MICEX index rose 1.8% for the week and the RTS index was up 2.3%.
  • Gazprom rose 3% to 213.3 rubles, a new high for 2011.
  • Rosneft gained 1.8% to 257.3 rubles after publishing better-than-expected financial results.
  • The second tier on MICEX saw a significant increase in volume, with Razgulay adding 11% and IDGC of North Caucasus rising 3.3%.

Sources:

  • Interfax (Feb 4)