The Russian stock market continues steady growth

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The Russian stock market continues steady growth mainly due to oil and gas sector. The situation around the oil market attracts attention of large investors to the oil companies which, with minimal risk have shown a steady profit. In particular, “Rosneft” and “Tatneft” are the leaders among the market participants.
After updating new price peaks and a small expected correction Rosneft in the short term will continue stable growth for the price level to 450,00 rubles per share. The securities of the company “Tatneft” rapidly update the new heights this is not the limit. After the breakout price level in 800,00 roubles, the stock will continue to rise to 900.00 for 2 – 3 months.
This increased interest in oil and gas companies due to the fact that oil prices rose Thursday, extending its gains from the growing evidence of serious disruptions in crude oil supplies from Iran and Venezuela after the fall of the oil reserves in the United States. Over the last two weeks Brent crude rose almost 10 per cent in the widespread perception that the global oil market tightens and in the next few months may be reduced, because the US sanctions restrict the export of crude oil from Iran.
The organization of countries-exporters of oil, of which Iran is the third-largest producer, will discuss in December the question of whether he will be able to compensate for the sharp fall in the supply of Iran after the imposition of sanctions in November. So while the situation remains tense, exporting companies will be relevant for investors.
In General, the Russian stock market may be in a sideways motion, because only one oil sector not one to pull the indexes of the Russian stock market is up. Therefore, we can observe some divergence between the closing indices at the end of the trading session.
Wall street resumed its rally on Wednesday: the S&P 500 and Nasdaq hit record highs for the fourth session in a row as a technology company raised the index higher, and prospective trade negotiations have caused investors ‘ mood. Apple Inc led the promotion of the technology sector, and shares reached a record closing level at $ 222,98. Group of companies FAANG with pulse stocks also got a boost from rising prices on Morgan Stanley regarding Amazon and Google Inc.
Amazon shares rose 3.4%, led to growth in the consumer discretionary sector (SPLRCD), as the company came close to becoming the second American company after Apple to reach a market value of $ 1 trillion. The remaining shares FAANG, Facebook and Netflix, closed slightly lower.
It seems that Canada has adopted a more conciliatory approach to its ongoing negotiations with the United States aimed at the salvation of the tripartite North American free trade agreement (NAFTA), a few days after Washington said that he made a deal with Mexico. The trade situation adds positivity to rally unlike the wind, as it was in the last few months.
Data on GDP in the second quarter showed that the US economy grew from a revised annual rate annual rate of 4.2% for the quarter, which is the best indicator for the last four years.
Gaidar Hasanov
“International financial center”