The Russian market wins back the increase of a rating of the Russian Federation

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The beginning of the week was successful not only for risk assets in General, but also for the Russian stock market in particular. The leading indices opened strong growth and remain positive, reacting to Friday’s decision of the Agency S&P on the rating upgrade of Russia to investment level. Afternoon index Mosberg increases in the range from 0.7%, slowing growth after a rally of 1.6 percent. RTS increased by 1.8% after a morning rally by 2.76% with an eye on the dynamics of the ruble, which reached a fresh February highs on weaker dollar, rising oil and tax payments.
On the wave of sharp growth of the national currency active demand for papers of the financial sector. So, VTB shares jumped more than 6%, being the growth leaders. Quotes “Sberbank” behave a little more modest, adding about 1.3% in the middle of the day. Worse than market looked papers “Rusala”, losing almost 3% on reports that the company’s Board of Directors sought the shareholders permission to participate in the “Russian roulette”.
“Inter RAO” has reported financial results for the year 2017. Net profit for the reporting period decreased by 11% in annual terms. Revenue increased by 6%. While pretax profit declined by 10% and operating profit was 27% less than in 2016. Mixed results the report has led to the rise of quotations on 1% in terms of widespread purchases in the segment of the most liquid securities.
Short-term prospects of the Russian market look positive. However, as soon as conditions improve rating of the Russian Federation, domestic investors again switched to external signals, where, despite the current interest in risk, the threat of renewed sales. So, at the first sign of deterioration in the external background index Mosberg and RTS may be profit-taking, especially if Brent is not able to confirm a breakout of the level 67.
Igor Kovalyov,
InstaForex companies group