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. Last Updated: 07/27/2016

U.S. Market Data Inspires Stock Rise




Domestic shares closed with strong gains Friday, inspired by a positive U.S. market reaction to economic data, traders said.


Some had predicted a correction from profit-taking after recent gains, but the U.S. data confounded these expectations.


The dollar-denominated Moscow Times Index of 50 leading stocks rose 3.8 percent to 164.51 on turnover of $25.21 million.


The RTS1-Interfax index ended 3.77 percent higher at 210.64 on good volume of $25.95 million. The broader Reuters Russian composite was up 3.14 percent at 2,069.27.


"There was no correction because the U.S. [market] did not fall. In the last week it was the U.S., which mainly inspired our market," said Fleming UCB trader Mikhail Burkhanov.


He also said there were small Western orders in the pipeline and saw a gradual market upturn, despite the August holiday season, if no major negative news hit shares.


He did not expect a correction in the next few days.


"I would say that a level of between 200 to 215 for the [RTS1-Interfax] index is likely for the next few days," he said.


A Western bank trader also said he saw sizeable Western orders ahead but thought that a real rally would only start when more big clients entered the market.


Andrei Kukk, head of sales and trading at NIKoil brokerage, earlier said he expected some volatile trade in the next few weeks, with the market going in both directions, before a rally.


National power grid UES ended 3.58 percent higher at $0.1533 and the Mosenergo regional utility rose 6.79 percent to $0.0472.


Oil major LUKoil added 3.35 percent to $14.80, while Surgutneftegaz oil was up 1.16 percent to $0.3130. Rostelekom rose 4.92 percent to $2.56.