The Russian stock market: Investors rush to take profits

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The Russian market closed in negative territory on Wednesday. Earlier, the index of Masuri, who eventually slipped 0.3 percent, hit a new record high. The RTS slipped slightly more, 0.6%. In General, the correction was appropriate and justified, given the overbought and unstable mood of investors on foreign exchanges, which again worsened.
The ruble also fell slightly against the dollar and was little changed against the Euro. This picture reflects the situation on Forex where the American currency continues to strengthen virtually across the entire spectrum of the market. Thus, the current situation reflects the deterioration of the dynamics of the Russian currency, which remains quite stable. However, in case of further purchases USD and conservation of uncertainty in the oil market, the breakthrough of the mark of 66 RUB will become a real threat for the ruble.
At the local level today, the mood of investors on the Russian market will depend on corporate reporting, led by Sberbank, which will publish the January data for the company. Also the tone will continue to set the energy sector, where the focus paper “Rosneft”, the tone which, in turn, will ask of oil.
Brent yesterday were able to grow, supported at 61. However, the recovery looked fragile and too modest to expect the development momentum. In confirmation of this in the morning trading session on Thursday quotations returned to the decrease, albeit moderate. So positive on that front, while Russian assets are unlikely to see.
Given this picture, mainly negative external background, today’s session may start below yesterday’s closing levels, and any attempts of further pullback from highs, but no signs of panic or mass liquidation of long positions, investors still believe in the power of the Russian market.
Gennady Nikolaev
Academy of management Finance and investment