The Russian stock market adapts to sanctions

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The Russian stock market closed the week relatively well. The combination of geopolitical factors, and news, then decreased, then increased volatility of the Russian stock market. On the background of the stability of oil prices, large investors have tried to diversify their risks and tried to invest in the oil and gas sector. Many people understand that Russia adapted in varying degrees to the sanctions from the US and after the April shock further sanctions not so affect the concerns of market participants. The only question relates to individual personalities and companies.
In General the Russian stock market has set diversificarea financial instruments, which may be of interest to market participants. In this case, after a small corrective movements in the securities of companies related to the oil and gas sector, this week will continue to grow the interest of investors on these shares.
The company “Rosneft” and “Tatneft” will update new highs. On the securities of “LUKOIL” there is a long-term positive as the company begins a program to repurchase shares worth $ 3 billion. And stability of oil prices can raise stock company “LUKOIL” to 6000,0 rubles per share in the next year.
Perhaps in the next two years, the company “LUKOIL” will be a favorite among investors. As for the other sectors, then it will see an increase in volatility due to different reactions to external news background. In General, this week for the Russian stock market may take with moderate volatility and no significant increase in major indexes.
Today in the US holiday – Labour Day (Labor Day), and trades on the us stock market will not take place. Last week, the market ended up pretty good. Bi-directional closing of major U.S. stock indexes were due to the results of the multi-directional closure of the individual sectors. The attention of investors was attracted to the company’s stock Ford, because the last two months, they rapidly declined and in this case, the price is far from the values of the company. American manufacturer Ford Motor Co plans to abandon the production of some of its car models in the framework of the planned operational restructuring, announced earlier this year.
The interest arose after Ford plans to complete the production models of the Mondeo, Galaxy and S-Max, and focus on more profitable cars. Shares of Facebook are in limbo, as the participating investors do not hurry to finally get out of securities, while new investors retain some concerns about the company.
Facebook needs to narrow its “radical” definition of terrorism, not to allow the government to arbitrarily block legitimate opposition groups and dissenting voices. But since the company’s shares are relatively cheap, it can attract potential customers in the near future. In General, the us stock market has all chances to continue to update historical highs this week.
Gaidar Hasanov
“International financial center”