The Russian stock market: investors are fleeing from risk

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Leading stock indexes of the Russian Federation opened on Friday in negative territory, accelerating the decline in the course of trading. Dynamics of the domestic market corresponds to the external background, where after the recent rally stock markets were at the mercy of profit-taking investors do not expect anything good from the summit “the Big seven”, which started today. Afternoon index Mosberg falls to 0.5%, while the RTS losses amount to almost 2%. The ruble decline develops in a basket of currencies. Brent adjusted to a mark of 77.
Worse than market looked papers X5 Retail, losing almost 5%, despite the fact that the international rating Agency Fitch upgraded long-term Issuer default rating of X5 Retail Group in local and foreign currency to “BB+” from “BB” with a stable Outlook. In its decision, the Agency cited the improved business profile of the company due to the strengthening of the market position as the largest grocery retailer in Russia.
Quotes “Gazprom oil” trading almost unchanged, sitting just below the opening levels. The company received a license to Novoturinskoye field in the Orenburg region. Geological reserves of this Deposit exceed 11 million tons of oil. The significant drawdown observed in the banking sector, where VTB is losing nearly 2.5%, while shares of “Sberbank” cheaper nearly 1.5%.
The out of risky assets across the entire spectrum of global markets explains the negative dynamics of the Russian shares, which are also influenced by the behavior of oil prices. Here while there is a moderate decrease, however, the correction could gain momentum that will only increase the pressure on domestic assets.
Igor Kovalyov,
InstaForex companies group