Stock market: the MICEX index increased by 0.48%. The index of RTS grew by 1.36%

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By the middle of the trading day the main Russian stock indices of RTS and Mosberg show uneven improvement in relation to the levels of the previous closing. This partly contributes to the positive dynamics of futures on stock indices of the USA and fairly weak correctional growth of the futures on Brent crude. However, the main reason for the current optimism lies not only in it. Yesterday, the Russian currency and the local stock market unexpectedly received powerful medium-term “pain” means in the form of news about a possible postponement of the entry into force of the new package of American sanctions to the beginning of 2019.
The specified news means that we with high probability will witness a new foreign policy shocks in the coming weeks. Under the most favorable confluence of events mid-term reduction of the risk of sanctions may coincide with an already long-overdue corrective rebound in crude oil futures. In other words, for local exchange “bulls” not all is lost yet before the end of this year.
By 15: 00 Moscow time the index of Masuri increased by 0.48%. The RTS index grew by 1.36%.
December futures on the RTS index (RIZ8) are traded in as minor backwardly a value of 1.6 p, or about 0.15% relative to the reference indicator. Derivative market participants today is close to the neutral rating of the medium-term prospects of the RTS index.
On the background of significant intraday gains index Masuri most liquid stocks traded mostly higher in the range of 1-2% relative to the levels of the previous close.
One of the most significant events in the market became strong intraday rise in the value of securities of Mechel JSC (MTLR RM, +4.92%), Mechel-Pref (MTLRP RM, +3.53%). Today the shares have a great reason for growth at high speed. It became known that the foreign creditors of the steel company stopped the collection of its debts in a judicial order in a British court.
Earlier in mass media there was information that a large part of the debt of “Mechel” to foreign investors were bought by Russian banks VTB. This allows us to hope that the worst of times for “Mechel” is left behind. However, the company still has a large repayment of debt that may take many years due to the likely subsequent restructuring.
It is also worth noting the strong increase in the value of shares of the coal company Raspadskaya (RASP RM, +4.25%). They continue to be in demand on the background of yesterday’s announcement by General Director of the Issuer Sergei Stepanov stating that the Board of Directors may consider the issues concerning dividend policy in December. Earlier it was reported that Raspadskaya may resume the practice of paying dividends with the improvement of operating results.
From a technical point of view in these papers has formed a positive signal in favor of medium-term game on increase in yesterday’s update, a seven-year high. However, after a sharp two-day gain, they risk strong enough to roll away from the achieved level. However, in the medium-term technical goals for them visible marker 140, 145, 150 RUB.
Currently, the index Mosberg stabilized near its intraday high, around 2390. To the end of the day in the U.S. will be published a large number of important statistics. However, due to its abundance, they are likely to be mixed. We therefore expect the prices of Masuri near current levels, with moderate increases in the range of 1% by the end of the day. Already after closing of the main trades in Russia will release postponed to Thursday after an official weekly statistics on stocks of oil and oil products from the US Department of energy (19.00).
Vitaly Manzhos,
Senior risk Manager,
IR “Algo Capital”