By Maya Dyakina and Sonia Elks

MOSCOW, Nov 22 (Reuters) - Russian shares trimmed earlier gains on Thursday

afternoon, with Rushydro outperforming the market after

recapitalisation plans were approved, while the rouble was stable in thin

volumes.

At 1319 GMT the rouble-denominated MICEX share index lost 0.10

percent to 1,410.4 points, while the dollar-denominated RTS was up 0.02

percent to 1421.31 points, following global markets, cheered by encouraging

economic data from China.

'The Russian market ... has now penetrated the rather critical 1,400 mark

for the MICEX. If the market holds that mark in the coming days, then upward

momentum will continue,' said Oleg Achkasov, head of equity trading at VTB

Capital.

'(However) given the uncertainty over Greece and potential further declines

in the oil price if the Middle Eastern tensions ease, the market could yet again

be pressured to go down.'

The power sector outperformed the market, rising by 1.36 percent, led by

Rushydro which gained 3.6 percent following news that President Vladimir Putin

had signed a decree authorising its 50 billion rouble ($1.6 billion)

recapitalisation.

Manufacturing and oil and gas sectors both underperformed the market, with

heavyweight Rosneft down 2.5 percent at 243 roubles in

Moscow and down 2.5 percent at $7.8 per depositary receipt in London.

Rosneft is in the process of buying rival oil company TNK-BP from

British major BP and Russia's AAR consortium in a $55 billion deal. As part of the deal, BP is set to plough back $4.8 billion of

proceeds into buying a 5.66 percent stake in the enlarged Rosneft from

Rosneftegaz at $8 a share.

Andrei Kook, a senior trader at Uralsib Capital, said the mentioned price

was a 'serious constraining factor' for Rosneft stock.

'Given that the securities have grown strongly in a short period of time,

many shareholders will be happy to sell at $8 and take a profit,' he said.

'At the current time, I don't see any reason why the shares should rise any

higher - the market conditions are not right.'

The rouble firmed 0.1 percent to 31.15 versus the dollar.

However, the Russian currency fell 0.4 percent against the euro at 40.16 . It was 0.1 percent lower at 35.20 versus the

dollar-euro basket which the central bank uses to guide the rouble's nominal

exchange rate, while prices for Brent crude slipped to under $111 a barrel after

a ceasefire was agreed in Gaza.

'There weren't so many exporters, but market players waited for their

currency selling and opened positions (long positions against the rouble) in the

morning,' said a dealer at a Western bank.

'In the evening speculators had to cut their positions because later

liquidity would fall to zero, as U.S. markets are closed'.

Russian Latest Net % % Change on

Markets Change Change year

STOCKS

MICEX 1404.34 -1.36 -0.10 0.15

RTS 1421.31 0.34 0.02 2.85

London ADRs 816.72 1.92 0.24 4.91

Emrg Mkt Indx 986.01 5.17 0.53 7.60

MSCI Russia 87.80 -0.08 -0.09 11.34

VTB 0.05 0.00 0.38 -10.94

Gazprom 142.51 -0.29 -0.20 -16.81

LUKOIL 1910.80 -4.60 -0.24 12.23

Rostelecom 120.04 0.04 0.03 -21.03

Dollar/Rouble 31.15 -0.03 -0.1 -3.10

Euro/Rouble 40.16 0.15 0.37 -3.79

Rouble basket 35.20 0.05 0.14 -3.45

DEBT Bid Ask %Rtn Coupon

Russia 10-yr 7.05 7.02 0.11 7.60

bond

MONEY MARKET Bid Ask Close

Overnight 5.65 6.16 5.95

rate

All data taken from Reuters at 1319 GMT

(Reporting by Maya Dyakina and Sonia Elks; editing by Stephen Nisbet)

Keywords: RUSSIA MARKETS/

(maya.dyakina@thomsonreuters.com)(+7-495-775-12-42)

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