The Russian stock market has found a reason to grow
After a negative start and a predominantly bearish dynamics during the day, the end of the session the Russian indices were able to get a plus, despite the weak external background, where the European and American markets suffered significant losses.
The mood of global investors has worsened after the recent reports about the intention of Beijing to limit the export of rare earth elements in the United States. In Europe players are more worried about the situation with the Italian budget. All this, coupled with concerns about global growth triggered a massive flight from risk that swept the oil market. However, Russian stocks could mosberg index of RTS following the results of session have added 1.20 percent and 0.38 percent, respectively.
LUKOIL is pleased with the statements
The leaders of growth, despite the decline in oil prices, came out of the action “Tatneft”, which rose 3.3%. Meanwhile, the paper of LUKOIL closed higher by 2.75% at the level of 5240. The demand for the company’s shares perked up after the publication of good financial results. In particular, the net profit under IFRS in the first quarter grew by 37% yoy, amounting to 149,2 billion rubles., Revenues from sales increased by 13.5% – to 1.85 trillion rubles it is Noteworthy that the favorable reporting helped the securities of “LUKOIL” significantly reduce the losses incurred previously as a result of the entry into force of changes in the composition of the MSCI indices in which the weight of the company’s shares in MSCI Russia index was lowered from 0.65 to 0.55.
After the closure of the Russian market of oil cut intraday losses through the API report, which reflected the reduction in crude oil inventories in the United States by 5.2 million barrels versus forecasts for a decline of 857 thousand
barrels. This factor may encourage the Russian market to open on Thursday, but for the most part the mood on the pads will depend on attitudes to risk. If investors do not stop to sell higher-yielding assets, optimism of the domestic indexes will not last long
Head of analytical Department,