Russia's month-end taxes support rouble, MTS shares rally

• The rouble gained 0.2pc to 63.77 against the U.S. dollar by 0747 GMT and also firmed 0.2pc to 70.31 versus the euro.
• The rouble-based MOEX Russian index climbed 0.3pc to 2,955.7.
• The dollar-denominated RTS index was up 0.3pc to 1,460.1.

MOSCOW: The Russian rouble firmed slightly on Monday, buoyed by month-end tax payments that usually prompt export-focused companies to convert their foreign currency revenues to meet local duties.

Shares in Russia's biggest mobile phone operator MTS outperformed the broader market by gaining 3pc on the day after the company said it had agreed to sell its Ukrainian business.

The rouble gained 0.2pc to 63.77 against the U.S. dollar by 0747 GMT and also firmed 0.2pc to 70.31 versus the euro.

Trade talks between the United States and China remained in focus. Keeping hopes for a breakthrough in the talks alive was the weekend announcement of Chinese plans for improving protection of intellectual property rights - seen as a move to address a sticking point between the parties.

While pricing in global risk perception driven by the U.S-China trade issues, the rouble received support from Russian taxes that could amount to around 1.7 trillion roubles ($26.63 billion) in November, according to a Reuters survey of analysts.

"(FX) Supply from exporters is likely to keep having a stabilising impact on the rouble early this week, though the role of external events may start to increase gradually," said Dmitry Polevoy, chief economist at Russian Direct Investment Fund.

Brent crude oil, a global benchmark for Russia's main export, was up 0.6pc at $63.76 a barrel, heading away from this month's low of 59.40 hit in early November.

Russian stock indexes traced oil prices higher.

The dollar-denominated RTS index was up 0.3pc to 1,460.1.

The rouble-based MOEX Russian index climbed 0.3pc to 2,955.7.