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. Last Updated: 07/27/2016

Share Prices End Week Up Slightly

Share prices ended a volatile week slightly up on moderately large trade volumes, while the ruble edged downward and external debt prices rallied slightly on news of an International Monetary Fund loan.


The Moscow Times Index of 50 leading shares closed Friday at 126.76, a 1.56 percent increase over the week, while the dollar-adjusted index notched a 1.31 percent gain to close at 57.53.


Brokers said volumes were high and buy orders were driven by foreign investors.


"Volume was big. There was big money buying Mosenergo, LUKoil" and other stocks, said Dmitry Kuzenkov, a trader at Olma brokerage. He said most buying was done by serious foreign investors with a six-month outlook.


Of the 50 MT Index issues, 22 advanced, 11 declined and the remainder were unchanged.


The week's winners included trucking company KamAZ, which gained 14 percent to close at an average over-the-counter price of $1.14; energy concern Mosenergo, up 11 percent to $0.238; and ferrous metals plant Severstal, which rose 9 percent to $4.13.


Declining stocks were Inkombank, down 15.5 percent to an average of $0.80; Lenenergo, which dropped 5.98 percent to $0.064; and Vareganneftegaz, which lost 4.82 percent and closed at $1.


Mosenergo's price was likely boosted by buying from about a dozen top brokers after a deal fell through with a Russian firm to sell them millions of shares. Brokers then likely honored their obligations with counterparties and were forced to buy Mosenergo shares.


Kuzenkov said that event probably did not affect the market as a whole.


"Mosenergo played a role, but not that big of one," he said.


On the treasury bill (GKO) market, yields on six-month GKOs increased at Wednesday's primary auction to 126 percent from 115.13 percent at last week's auction.


The government has lowered prices and sent yields skyrocketing recently -- increasing the cost of state borrowing -- in an effort to raise money to fulfill spending pledges.


On other markets, the ruble inched downward just nine points against the dollar on the week, closing Friday at 4,856, while Russian external debt was up slightly on Tuesday's final approval of the $10 billion, three-year International Monetary Fund loan.