Rouble slips, Yandex shares outperform

MOSCOW: The rouble weakened on Wednesday, remaining under pressure from geopolitical risks and lower oil prices, while stock indexes rose, helped by rallying Yandex shares after the internet giant said it was in talks to buy Russian online bank Tinkoff.

At 0738 GMT, the rouble was 0.3pc weaker against the dollar at 76.31, moving towards 76.5950, its lowest level since April which it hit earlier in September.

Against the euro, the rouble eased 0.1pc to 89.24.

Kremlin critic Alexei Navalny remained in the spotlight after being discharged from the Berlin hospital where he has been treated after suspected poisoning with a Novichok nerve agent, an accusation Moscow denies.

Western leaders say fresh sanctions against Russia should be considered over the incident, something that Moscow had admitted was affecting its borrowing plans.

On the local market, investors' attention is focused on two auctions of OFZ treasury bonds by the finance ministry later on Wednesday.

Demand for these bonds, auctioned weekly by the finance ministry, often buttresses the rouble.

The currency is likely to stay closer to the lower boundary of the 75-80 range against the dollar in coming days, Promsvyazbank analysts said.

Brent crude oil, a global benchmark for Russia's main export, was 0.2pc lower at $41.63 a barrel.

The dollar-denominated RTS index was up 1.8pc to 1,215.2 points.

The rouble-based MOEX Russian index was 2pc higher at 2,942.9 points.

Shares in Yandex, known as Russia's answer to Google, rose 4pc to 5,101 roubles ($66.90) after the company said it was in talks with TCS to buy its online bank Tinkoff.