The Russian stock market for the week remains in the negative

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Publication of reports from the largest companies in Russia continue. Despite the negativity on external markets and political passions, the stock market continues to consolidate its fundamentals. At the same time, “Gazprom” continues sue “Naftogaz Ukraine” through a “neutral” Swedes, except where an appeal to the Stockholm arbitration from the Russian side, both sides started the procedure of termination of existing contracts for the transit and delivery.
Within one and a half to two years, the conflict will remain a smoldering, sometimes turning into an active phase, but on the quotes of Gazprom’s influence will be rare.
“KAMAZ” presented a good report on the company for 2017, in particular, the net profit increased 2.5 times, however, the market did not allow the papers to close in the green. The report “BRIC” showed another decline in profits, growth was observed only in revenue. The company’s securities in a prolonged dive, and buy now only at part of their strategy. However, a corrective bounce within the year is very likely, therefore, to autumn is the time for consolidation. Records of the “ALROSA” and “Enel Russia” can be considered positive, but the “Megaphone” today just hurt its shareholders when he refused from dividends. The value of securities fell by almost 10%, which shows the surprise statements.
Foreign news was also controversial. Statistics from the US showed that retail sales were slightly worse than forecast guidance, and the producer price index has improved slightly. Oil reserves have increased more than two times, however, the expected decline is not caused, oil has risen slightly.
The results of the week in the stock market of Russia can be called moderately negative, the market fell below $ 2 300 points, not all the company has overcome the crisis painlessly, and political news from the USA and England for some time interrupted even the basic indicators of the economic sphere. However, impending elections and pressure from abroad was not able to seriously change quotes, and the trade balance continues to increase the inflow of currency into the country, together with the inflows from repatriation of previously withdrawn capital.
Friday will be full of uncertainty in the domestic market, despite the positive in the economic sphere, only Monday movement get specific direction and investors will be in the morning to win back the news of the resurrection. Questions no one, however, foreign investors demand stability, not less, than Russian, therefore positive throughout the beginning of the week will be visible across the spectrum of securities.
Alexander Grigorenko,
Asset Manager
IR Global Capital