Russian stocks continue to grow on Monday amid positive external background

TASS Russian News Agency | Jul 6, 2020 at 6:40 PM

MOSCOW, July 6. /TASS/. On Monday, the Russian stock market continued the upward trend that was formed at the end of last week, thanks to a positive external background.

The MOEX index grew by 1.2%, to 2,835.18, and the RTS index went up by 0.97%, to 1,247.14 points.

As of 6:58 pm Moscow time, the dollar-to-ruble rate increased by 0.37%, to 71.63 rubles, the euro grew by 0.88%, to 80.99 rubles.

Purchases in Russian securities were supported by the situation on the energy market, where the price of nearest futures for Brent crude oil showed a growth of 1%, to $ 43.13 per barrel. The dynamics of the Western stock markets also had a positive effect.

"In the evening, in Europe, the main indexes added up to 1.6%, and in the USA after the first hours of trading, the Dow Jones and S&P500 moved up by 1.4% and 1.5% respectively," said Bogdan Zvarich, chief analyst of Promsvyazbank.

Among Russian companies the leaders were were Yandex and Group with their securities grow by more than 4%.

The prices of shares of Norilsk Nickel declined 4.8% amid news that the Federal Service for Supervision of Natural Resource Usage (Rosprirodnadzor) estimated damage to water bodies from the accident in Norilsk in the amount of more than 147 billion rubles ($2.04 bln), and soils - more than 738 million rubles ($10.3 mln).

"This is much higher than the estimates made by comparing the potential amount of damage, if it - in the regional economy - is comparable to the scale of the damage caused by BP's Deepwater Horizon oil platform accident," said Freedom Finance analyst Alexander Osin.

Nevertheless, in short and medium term, even such damage will be to a certain extent or completely mitigated due to the potential income of Norilsk Nickel from the sale of its three last deposits in Australia, the expert added.