Russian equities locked in gains on Friday due to a favorable external news flow, with global stock markets heading north and oil and metal prices going strong. US stock indexes opened upwards after macroeconomic data were released, which also lent support to the Russian stock market. Consumer spending climbed 0.4% in July and earnings grew 0.5%, while both indicators were projected to rise 0.3%. Meanwhile, PCE Core grew a mere 0.1% in July vs. the 0.2% estimate, thus increasing the likelihood that the Fed will cut interest rates at its September meeting. A ruble liquidity crunch in the banking sector was one of few constraining factors. By the final bell, the RTS Index grew 2.10% to 1,919.89 and the MICEX Index climbed 2.19% to 1,677.02. Brent crude moved higher on fears of another storm shaping up in the Atlantic Ocean to close at $72.90 a barrel, which pushed up Russian oil and gas shares on MICEX. Rosneft grew 2.93%, Gazpromneft added 2.91%, Surgutneftegaz rose 2.52%, Tatneft gained 2.22%, Gazprom advanced 1.84% and Lukoil picked up 1.33%. Metals were among the top MICEX gainers on Friday. NorNickel added 2.56% on higher nickel prices which topped $30,000 per ton. On the second-tier front, Severstal surged 5.72%, NLMK jumped 5.92% and MMK climbed 4.21% on expectations about these companies upcoming H107 financials. MTS also climbed 3.74% on MICEX on expectations of strong H107 financials after the release of VimpelComs upbeat earnings figures. Other blue chips also landed in positive territory on MICEX. Sberbank surged 3.28%, VTB advanced 1.01%, UES edged up 0.03% and Rostelecom closed 0.22% higher. Market turnover picked up to $63.14 mln on benchmark RTS and amounted to $7,366.88 mln on MICEX.
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[Source: Russian Stock Market Blog]
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