By Friday evening, the index of the Moscow exchange might fall back down

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Stock market in the first half of the day partly recovered yesterday’s losses. At 15:00 Moscow time the index of Masuri gaining 0.45% and is trading around 2285 points. The RTS index added 1.14% and rose to 1141 points. In the afternoon, more likely a slight pullback as some investors prefer to fix profit before days off. Next week, two factors may have a significant impact on the bidding: it is the outcome of trade negotiations, the U.S. and China and the outcome of the review of the nuclear deal between USA and Iran. The situation is possible new sanctions against Tehran, with the consequent aggravation of the situation in the middle East.
The leaders of growth among “blue chips” today, shares of “LUKOIL” (+1,3%), the outsiders – “Sberbank” and “Aeroflot” (-1%). Shares of “KAMAZ” (+4,5%) continue yesterday’s growth after the strong statements for 2017 under IFRS net profit up 5.3% to 3.5 billion rubles Additional support for the company’s stock plans of the government to support the domestic auto industry.
Increased nervousness persists in the shares of “RUSAL” (-3,5%). Today, the company announced that the deadline fulfilled all obligations to pay the coupon on Eurobonds, that is, technical default was avoided. However, some holders of Eurobonds of “RUSAL” has not yet received payment, the consequences of the fact that some contractors are afraid to make payments of the aluminum company due to the risk of sanctions from the U.S. Treasury.
The focus on the Russian stock market continues to be the dividend history. “ALROSA” at the end of 2017 will be paid to shareholders of 5.24 RUB per share. This is almost two times less than a year ago – last year was difficult for the company. But in the following year, the dividends can grow (in this case ALROSA is considering the possibility to move to interim payments), fundamentally interesting stocks to buy. Also today, the Board of Directors of ALROSA supported the integration with Smolensk “the Crystal”. In the long term this should have a positive impact on the financial performance of the company, as it will allow ALROSA to sell products with higher added value.
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Roman Tkachuk,
Senior analyst,
Alpari