The local stock market could not continue the growth started in the morning

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By the middle of the trading day the main Russian stock indices of RTS and Mosberg demonstrate multidirectional deviation in relation to the levels of the previous closing. Despite a positive opening, with a noticeable gap up, the local stock market failed to continue the yesterday’s upward movement. Against domestic bulls played the deterioration of moods in Europe. Objective the impetus for this was the publication of macroeconomic statistics, which pointed to the decline in the composite regional index of business and consumer confidence in the Eurozone.
By the way, today it became known about quite a progressive initiative by the EU in trade negotiations in the United States. United Europe has offered the United States a mutual zero customs duties on all industrial goods.
Returning to the domestic stock market, we would not forget that crude oil futures Brent today once again updated its medium-high and continue to trade with strong gains of around 1.5%. Therefore, the emerging intraday decline of indexes of RTS and Masuri may not seriously continue. Likely in the evening hours of the auction they will more or less volatile sideways movement.
By 15.15 GMT. Mosberg index fell 0.19%. The RTS index grew by 0.34%.
September futures on the RTS index (RIU8) are traded in as minor backwardly value of 1.5 p., or about 0.15% relative to the reference indicator. Derivative market participants today was close to a neutral assessment of the medium-term prospects of the RTS index.
Despite the moderate intra-day drop in the index of Masuri most liquid stocks traded mixed with a deviation of 1-2% compared to the levels of the previous close. Noticeable the only exception are illiquid securities, which move under the influence of its technical factors.
Thus, significantly stronger than the market traded securities of Aeroflot (AFLT RM, +3.71%). Today, they came in third place for speed among the stocks on the Moscow exchange. Information about the current purchase activity in these actions was the improvement of the recommendation on them from “sell” to “hold” from the side of one of the largest American investment banks. The rising cost of jet fuel and weak semi-annual financial results already included in the price of these securities.
However, one should not forget that in the next package of sanctions against Russia can be enabled targeted restrictive measures against Russian airlines. Earlier in mass media already there were several contradictory statements on this subject.
This morning we talked about the fact that yesterday’s speculative rise in the value of shares MegaFon (MFON RM, -18.55%) were not confirmed by high trading turnover and may not be sustainable. In addition, quite disturbing by the news that two top managers of MegaFon, sold everything they owned shares. Today these paper rapidly slid to the closest significant technical support located in the area of 550 RUB.
Currently, the index Mosberg rebounded from its intraday low and rallied above $ 2340 p. Some influence on the course of trading in Russia may still publish the weekly change in the number of initial claims for unemployment benefits in the United States (15.30 GMT.). In General, we expect the prices of Masuri near current levels, with a moderate deviation in the range of 0.5-0.7% on the day.
Vitaly Manzhos,
Senior risk Manager,
IR “Algo Capital”