The Russian stock market can not begin steady growth

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After a positive start, the mood in the stock markets of Europe have deteriorated, and the major indexes plunged to negative territory due to renewed political risk in Italy. On this wave of Russian benchmarks that tried to grow in the beginning of the session, had also settled in the red zone, including from-for falling of the oil prices before the OPEC meeting. Afternoon index Mobimii is reduced within 0.2% and the RTS lose more than 0.6%, reflecting the fall of the ruble, which once again opened the dollar the way to the point 64 RUB
MegaFon is trading with a moderate increase of 0.8% following the release of financial and operating results for the 1st quarter of 2018. Consolidated revenues in the Telecom segment grew by 2.6% in annual terms, net profit increased by 57.2%. The company has reduced free cash flow by 4.1 billion rubles compared to the same period of 2017. Thus, the “Megaphone” for the first time in history recorded a negative free cash flow.
In accordance with the wishes of the Russian President, Rosneft approved dividends for the year 2017 in the amount of 50% of net profit in accordance with IFRS, which last year amounted to 222 billion rubles. Until August 2017 dividend policy, the company assumed the payment of not less than 35% of IFRS net income. Also at the annual meeting of shareholders, Sechin pointed to the likelihood of a tangible growth dividend in 2018, citing a doubling of net profit in recent months. Shares of “Rosneft” for today’s trading expensive 0.55% potential constrains the fall in world oil prices.
Russian indexes is not able to stand on the path of sustainable growth due to nervousness in the oil market and an unstable external background. The mood of global investors has improved after the sale earlier this week, however, signs of euphoria is also not observed. However, pending the decision of the OPEC countries+ production volume domestic investors are unlikely to be solved by active purchases, even if the tension on foreign markets will subside in the near future.
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Igor Kovalyov,
Analyst
InstaForex companies group