The Russian stock market: Investors are not afraid of sanctions

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The Russian stock market on Friday started trading in a moderate plus. Investors not afraid of sanctions, which were tightened on the eve of the United States against Russia. Given that the market is at record highs, and the geopolitical background becomes timid steps harder, morning buy look pretty bold. To date, the leading stock indexes move in different directions. A list of the morning leaders demand lead paper “BRIC” and “M. Video”. Among the outsiders draw attention to themselves shares of “NOVATEK” and “Mechel”.
The external environment for today’s trading session was positive. U.S. markets ended the previous trading rapid growth, the index futures S&P premarket slightly add. Oil prices this morning are recovering, market sentiment is optimistic. A barrel of Brent crude oil is trading at $74,00 (+0,4%).
The pair Euro/dollar in the morning of Friday stabilized at 1,1780, but as long as investors leave for the main currency pair the opportunity to continue to rise. The US dollar remains in the shadow of market attention, bidders believe that once the import duties in the U.S. and China introduced gradually, from the parties is the chance to negotiate. This increases the risk appetite.
Russian ruble in the first hour of the session today was mixed in a basket of currencies. The US dollar is 66,22. (-0,04%). Sanctions were partly taken into account in the quotations, other details of the market ignores in his usual manner. Quotes pair dollar/ruble will hold the final trading day of this week within the values of 66.00-of 67.00 RUB, EUR/RUB within the range of 77.85-78,95 RUB.
Index Mosberg can consolidate in the region 2385-2415 points.
First Deputy Prime Minister and Minister of Finance Anton Siluanov on Thursday created confusion in the issue of further interventions. As you know, at the last meeting of the Bank of Russia together with the rate increase, announced that it would stop buying currency for the Ministry of Finance by the end of this year. The Bank’s decision and the rejection of intervention had the positive effect on the ruble. In this regard, Anton Siluanov, suggested that the purchase of currency is possible to resume if the domestic currency continues to rise.
The Minister immediately denied Ksenia Yudaeva, first Deputy head of the Bank of Russia. According to her, the controller of his promises are not violated. This denial has implications for the market, as the resumption of purchases of foreign currency is now extremely desirable for the ruble.
The geopolitical situation remains tense, the fall, the market expects the introduction of new sanctions, and improve the rate of FRS of USA, all this can lead to new bursts on the market and in fact the intervention will only aggravate the situation. In addition, the August results showed the negative impact of exchange rate fluctuations on inflation.
In the corporate sector should pay attention to the meetings of the Board of Directors of “Norilsk Nickel”, “IDGC of Centre”, “NOVATEK”, “MGTS” and “RussNeft”. Canada will present data on inflation and retail sales. The index of business activity in the manufacturing sector and the services sector will publish US.
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Alexander Razuvayev,
The Director of analytical Department,
Alpari