The Russian stock market in the euphoria after the decision of Agency S&P

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After the decision of rating Agency S&P to raise Russia’s rating from “junk” area in the minimum investment, the excitement remained for the entire trading day on Monday. Index Mosberg stepped to a new record high, based on excess of market emotions. Now the participants will try to gain a foothold within 2345-2350 points on the rouble indicator. RTS index has risen in the area of 1330 items, offering the road in the direction of 1350 points in the future.
However, this rally is unlikely to be long-lasting. Today has been a lot said about the reverse side of this rating improvement – while the Russian economy will not be a market and begin to expand due to natural processes, not through the efforts of the state machine, no growth in the ratings is no more. But the euphoria after a couple of days pass.

The dollar today fell against the ruble

The pair dollar/ruble fell today to the lowest levels in almost four weeks. Toward evening, the instrument was restored in the area 55,95 RUB, but while the U.S. currency is in a weak position and leaves the chances of additional drawdown. The nearest support is the mark of 55.15 RUB, the resistance is the level 56,15 RUB EUR/RUB soon stabiliziruemost within 68,70-70,50.
The shares of VTB (+6,2%) were now in the forefront of demand on the background of corporate news about the expansion of the Bank’s net profit in the fourth quarter of 2017 2.5 times. Overall, net profit for the whole of last year increased 2.3 times. The papers now open the way up to the RUB, it is 0.0575, peaks from November 15.
After three days of rebound of the shares of “Magnet” (-4%) once again under pressure. Somewhere in the region of 5,000 rubles, and the paper needs to stabilize and consolidate, and it will be a good scenario. In the case of the emergence of a negative the bears quickly remember that the key target was 4000 RUB. they last attack and have not reached.
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Anna Bodrova,
Senior analyst,
Alpari