Stock market: Investors resumed active buying

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The Russian stock market since the beginning of the trading week is targeting a new record. This is possible for two reasons: rising oil prices and investor activity since the start of the new year. The price of oil on Monday in Asia stabilized after official data showed that the slowdown of economic growth in China met expectations and was not as dramatic as feared by some analysts. China’s economy grew by 6.4% in the fourth quarter of 2018 compared to a year earlier, as expected, official data from the National Bureau of statistics showed Monday. In 2018, the country’s economic growth was 6.6%, which also corresponds to the expectations.
Meanwhile, traders are waiting for further news about trade frictions between the US and China. Oil futures on Friday rose 3% after reports that the two countries are considering concessions on the eve of the visit to Washington of Vice-Premier of China Liu he, on 30 and 31 January, for talks aimed at resolving an ongoing trade dispute between the two countries.
On Friday Baker Hughes reported that the number of rigs drilling for oil decreased by 21 to 852 for the week. It was the third weekly decline in the number of drilling rigs in a row and the biggest weekly drop since February of 2016, indicating that the slowing of oil production on the domestic market.This followed Thursday’s report of the Organization of countries-exporters of oil, which showed that the production of the group fell to 751 000 bpd to 31.6 million barrels a day in December.
In other news, it should be noted that the reduction in supply led by the Organization of countries-exporters of oil continued to support oil prices. Expect a growth stock in such companies as: “Rosneft”, “Gazprom Neft”, “LUKOIL”, “Tatneft”, “Bashneft”. The shares of these companies on average can grow by 2.3% in the short term. Also from other sectors will be interested in the shares of companies: AFK Sistema (MCX: AFKS), the expected increase of +2.3%, VTB (MCX: VTBR) can add +1.7%, Sberbank (MCX: SBER), the growth potential may be +1.4%. In General, the Russian stock market can be described as positive and is expected to continue the growth of the major indexes.
Wall street, as expected showed the active growth at the end of last week. US shares rose in after-hours on Friday, as growth in the sectors of oil and gas, Industrials and basic materials has led to growth stocks. At the close of the NYSE industrial index Dow Jones Industrial Average was up 1.38% to new 1-month high, the S&P 500 added of 1.32% and the NASDAQ Composite added of 1.03%. The best players in the session, the Dow Jones Industrial Average were shares of Home Depot Inc (NYSE: HD), which has grown by 2.69% or 4.71 points to 179,58 at closing.
Meanwhile, UnitedHealth Group Incorporated (NYSE: UNH) jumped 2.21 per cent or 5.73 points, 265.50, and Caterpillar Inc (NYSE: CAT) rose by 2.18% or 2.92 points to 136.60 at the end of the auction. On average, the stock can continue to rise after the correction movement with the potential of +1.7% to the end of the week. Stocks from the technology sector, Netflix, Atlassian and Microsoft create the titles of the posts.
Taking into account the profit to investors is something to think about. During the week, two notable earnings report from technology companies was the report for the fourth quarter financial report of the company Netflix (NASDAQ: NFLX) about updating software to work together and improve performance, (NASDAQ: TEAM) for the second quarter. Microsoft (NASDAQ: MSFT) has also hit the headlines last week, due to the fact that Microsoft plans to stop supporting Windows phones.
In fact, Microsoft is preparing to kill completely their support for the operating system Windows Phone. Given the popularity of smartphones “Android”, and “i OS”, Microsoft decided to eliminate the extra maintenance costs of their system. Which will increase profits for this year. The company’s shares can continue to rise to $113,00 per share.
Gaidar Hasanov
“International financial center”