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. Last Updated: 07/27/2016

RTS Shares Up on Back of Nasdaq

Russian shares closed up on a flood of short covering induced by gains on the U.S. Nasdaq market Thursday, with blue chips gaining around 4 percent and volumes more than doubling from the previous session.

But traders said fast money had hoisted the market. They said longer-term predictions were still difficult to make.

The key RTS index climbed 3.27 percent to 177.36 on volume of $17.8 million. The broader Reuters Russian Composite edged up 3.37 percent to 1,472.05.

"So are we seeing a suckers' rally here?" Renaissance Capital wrote in an evening market wrap.

"The market should push to 180, but we will have to wait and see if we squeeze through."

"We're still hostages to the situation on global markets," a Russian trader said. "We don't have any new money, so thank God we aren't being sold off. The market's problem is the total absence of any long-term money."

Traders said gains in U.S. futures forced some market participants to cover short positions late in the day.

"When the futures went up, more active buying started," the Russian trader said. "It looked like people went a little short today when they saw the futures were off, but that scenario didn't play out."

Traders said active demand was mostly concentrated in Unified Energy Systems and in oil shares, sparked by a rise on the American Depositary Receipt market Wednesday.

UES rose 4.95 percent at $0.1060. Oil shares LUKoil and Yukos inched up 4.1 percent to $10.15 and 2.33 percent to $2.85, respectively.