MOSCOW, Sept 21 (Reuters) - Russian financial sector stocks retreated again on Thursday as the central bank said it would rescue B&N Bank, the country’s 12th largest lender by assets.
The central bank agreed to rescue B&N Bank, also known as BIN Bank, by injecting extra capital, becoming the main investor in the troubled lender and its affiliated banks.
Financial stocks pushed lower as the move raises questions about the stability of the sector and the efficiency of the central bank’s supervision policy. B&N’s bailout came less than a month after the central bank had to rescue Otkritie, once Russia’s largest private lender.
The composite financial sector stock index was down 0.3 percent at 7,364 as of 0810 GMT after falling as low as 7,309 the day before.
The index underperformed the benchmark rouble-traded MICEX index, which shed 0.1 percent to 2,055.4.
Research notes from banks and brokerages largely omitted any mention of the B&N bailout, paying more attention to developments on global markets prices and the U.S. Fed, which left rates unchanged in the world’s largest economy.
“Equity investors largely brushed off plans for BINBANK to be taken under administration, and focused instead on oil and the rouble,” analysts at Sberbank CIB said in a note.
Prices for oil, Russia’s key export, remained generally supportive for Russian assets as Brent crude futures hovered above $56 per barrel.
The rouble, however, eased 0.2 percent to 58.22 against the dollar and shed 0.3 percent to 69.35 versus the euro.
The rouble’s weakness is rooted in global expectations that the U.S. Federal Reserve will raise interest rates more than previously expected, Rosbank, a Russian subsidiary of Societe Generale, said in a note.
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Russia in graphics: link.reuters.com/dun63s (Reporting by Andrey Ostroukh; Editing by Gareth Jones)