The Russian stock market demonstrates the relative resistance

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In the last trading day of last week the Russian market was trading mostly under pressure, however, moderate. On the one hand, the domestic assets pressure predominantly negative external background where investors come down to earth after the January rally. With the other oil has so far refrained from deep sags, which constrains the negative impact from foreign sites. On Friday, the index Mosberg fell to 0.3%, while the RTS closed with minimal changes, but is also in negative territory. In early trading in Asia, the major indexes traded in different directions, returning after celebrating the New year on the lunar calendar.
Local positive for the Russian market today is the news that over the weekend, Moody’s upgraded the sovereign credit rating of Russia to investment grade Baa3 with a stable Outlook. In its decision, the Agency cited “the positive impact of the policy adopted in recent years to strengthen the already robust financial and other external indicators of the country”, and to reduce the country’s vulnerability to external shocks, including the introduction of new sanctions.
The ruble moved to growth on Friday and took the dollar from the level of 66 rubles. While on the weekly chart the pair still closed in negative territory. Predictable outcomes of the meeting of the Bank of Russia did not impress in the market and on the rouble in particular. The Russian currency continued to show resilience in the face of negative external signals and unstable position of oil. Moreover, quite a currency endures a phase of strengthening demand for the dollar in the international arena. However, in this environment, a significant deterioration on all fronts may weaken the position of the ruble, despite a coming tax period, which starts at the end of this week.
Gennady Nikolaev
Academy of management Finance and investment