The Russian stock market has partially won back morning losses
By the middle of the trading day the main Russian stock indices of RTS and Mosberg showed a significant decrease relative to the levels of the previous closing. However, they have managed to win a significant share of the morning drawdown. Thus, the local stock market rebounded from next support level.
Most likely, today it will not go much lower. This contributes to the improved external background. In addition, an external positive signal was the message that Moody’s Rating Agency next year may raise Russia’s sovereign rating to investment grade with a good combination of circumstances. This issue is mainly linked to the continuing risk of sanctions.
By the way, yesterday’s news that the US is not considering the possibility of introducing additional sanctions against Russia, was not accurate. Its meaning changed to the opposite after the correction of the translation of the corresponding statement of the adviser of the President of the United States John Bolton. Known psychological pattern States that people often hear what they want to hear.
To 15.40 GMT. index Mosberg decreased by 0.84%. The RTS index declined by 1.22%.
December futures on the RTS index (RIZ8) traded today in a state of near parity relative to the reference indicator. Thus, the futures market participants about the medium-term prospect RTS index neutral.
A notable intraday drawdown index Masuri, the most liquid stocks traded mostly lower in the range of 1-2% relative to the levels of the previous close.
Among blue chips significantly weaker than the market traded shares of oil company LUKOIL (LKOH RM, -1.67%). However, after two days of strong gains it is quite possible to “forgive” this temporary weakness. Before these papers have gained slightly less than 5%, after a noticeable increase in weight in the composition of the MSCI Russia index. From a technical point of view, these papers once again retreated from the strong resistance level located in area of 5000 RUB. most Likely, we will see new attempts to break it in the coming days.
ClA shares of Yandex (YNDX RM, -2.30%) continues to look weak following recent unconfirmed rumours about a possible future transition of the Issuer under the control of “Sberbank”. Not matter these securities to the benefit of and news on the legislative initiative on establishing restrictions on the presence of foreign capital in the news aggregators to 20%. These events can significantly cool the interest of foreign investors to actions of domestic IT-companies.
Shares of ALROSA (ALRS RM, +2.62%) today sharply rebounded from its two-month low. Nearest technical target for them, serves important psychological and technical level of 100 RUB. Likely situational interest in these securities fueled the news that top management of diamond mining company discussed the possibility of partnership with representatives of Saudi Arabia. Such cooperation is possible under the current accession of Saudi Arabia to the existing Russian-Chinese Fund.
Shares of NLMK (NLMK RM, +1.07%) enjoyed moderate demand on the background of the publication of strong financial results of the Issuer in accordance with IFRS. Net quarterly profit of steel companies has increased by 82% compared to the 3rd quarter of 2017. And for the first 9 months of this year net profit of NLMK increased by 69% in U.S. dollars.
Currently, the index Mosberg back in the middle of its daily range, approaching the level of 2315 p. recent American statistics for the monthly change in orders for durable goods and the weekly change in the number of initial claims for unemployment benefits have been mixed. We therefore expect the prices of Masuri near the current level with a significant decrease in the range of 0.3-1.2% by the end of the day.
Senior risk Manager,
IR “Algo Capital”