The Russian market in the power of the “British factor”

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Friday’s session the Russian stock market started without significant changes compared with the opening levels. However, as the revival session the outer film again made itself felt, and indexes have been forced to go into negative territory. Mosberg index and RTS index losing 0.67% and 0.8% respectively. Investor sentiment remain depressed because of the worsening conflict between Russia and Britain, as well as the extension of the sanctions list from Washington. At the same time the recovery in oil prices partially smooth political film, and the ruble is declining moderately, trading near fresh monthly lows.
In most “blue chips”, there is a tendency to decrease. Shares of Sberbank, which for the previous two days has fallen in price on 7%, continue to fall. Preferred shares were the three outsiders today, losing 2.5 percent. Paper Bank acutely aware of the negative side of the “British factor” due to the presence of large units in London. The largest decline was beat preferred shares of Tatneft, which has accelerated the decline of almost 3%. Meanwhile, shares of “Gazprom” and the AF “System” are in decent demand, growing on average by 1.4%.
Better the market look like quotes “inter RAO”, rallidae nearly 2% after the company’s Board of Directors recommended to the annual meeting of shareholders to approve dividends for the year 2017 in the size of a quarter profits – 13,612 billion RUB, RUB, or 0.13 per share. Investors reacted positively to the news, fearing more modest recommendations, because at the end of last year “inter RAO” earned 11.4% less than in 2016. But the company decided to continue to adhere to the policy for direction on dividends 25% of IFRS net income.
The international situation remains tense, and in this context, given the direct involvement of Moscow in these conflicts, the prospects for Russian assets in General do not look perfect. At the same time as on external markets and the domestic market pronounced panic is not observed, although nervousness is likely to persist for a long time. This morning, Russia said new sanctions of America, and promised retaliatory measures. With the development of events in a negative way the pressure on the domestic indices may increase.
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Igor Kovalyov,
Analyst
InstaForex companies group