MOSCOW: Shares in Russian oil giant Rosneft outperformed the broader market on Monday after the company's board approved a share buyback plan, while the rouble weakened under the threat of new US sanctions.
Rosneft shares rose 1.5 percent to 417.50 roubles ($6.58) per share by 0842 GMT, having briefly hit their highest since early 2017 at 422.60 roubles, and were outperforming the benchmark stock market MOEX, which was up 0.4 percent at 2,306.2 .
The company said its board of directors had approved the structure and parameters of a share buyback programme worth up to $2 billion.
Russian aluminium giant Rusal also gained after the company posted a profit for the second quarter despite sanctions imposed on the company earlier this year by Washington.
Shares in Rusal were up 1.5 percent at 25.48 roubles on the Moscow Exchange after rallying 4.55 percent in Hong Kong trade.
On currency markets, the rouble took a hit after US senators proposed imposing sanctions on Russia's new sovereign debt in an attempt to raise pressure on Moscow.
The Russian currency was 0.3 percent weaker against the dollar at 63.50, having briefly touched 63.61, the level last seen on July 20.
Versus the euro, the rouble eased 0.3 percent to 73.43 .
Konstantin Kostrub, head of trading operations at ING Commercial Banking in Moscow said there were currently more reasons for the rouble to weaken than to firm.
"The theme of sanctions is still there. The market keeps it in mind and is looking for developments in the next month or two. Plus, the finance ministry is increasing buying of foreign currency," Kostrub said.
The finance ministry said last week it planned to step up purchases of dollars and other foreign currency for the state coffers over the next month.
If there are no new reports of sanctions against Russia, the rouble is likely to trade in a range of 63.0-63.5 against the dollar, analysts at Rosbank said in a note.
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