The Russian stock market is growing on average by 0.5%
The Russian securities market on Wednesday opened the visible purchases. To date, the leading stock indexes average gain of 0.4%. A list of the morning leaders demand lead paper “OVK” and “Gazprom oil”. In the red traded shares of “MegaFon” and the gold mining company “pole”.
The external environment for today’s session was formed. American markets closed the previous trading in the green zone. Index futures S&P in premarket trading with a slight increase.
Oil prices continue to rise. A barrel of Brent is now $61,2 (+1,3%). Investors focused on selected factors that are not paying attention, for example, the continued growth of oil reserves in the United States. They use a component of the decrease in gasoline stocks as the main catalyst for recovery.
The Euro/dollar is again trying to win back losses. Main trades are around 1,1290. The US dollar looks stable: after comments from President Donald trump’s readiness enter next week the new duties on car imports, grinbek regaining its status as a safe asset.
The Russian ruble remains committed to a recovery in a basket of currencies. The dollar is worth 66,90 RUB (-0,3%). On Wednesday, the pair dollar/rouble will be in the range of 66.75-67,35 RUB, EUR/RUB within the range of 75,35-75,95 RUB.
The index is back above Mosberg 2345 points, so we can expect further consolidation within 2340-2360 points.
On Tuesday, November 27, the Russian Finance Ministry has placed Eurobonds in the amount of 1 billion euros maturing in 2025, that is, for 6 years. The accommodation was quite attractive. The placement price of one bond amounted to 99,221% of the nominal value. The rate of coupon yield on all coupons of 2.875% per annum, the yield to maturity of the bonds is 3% per annum. By the end of the day the demand exceeded the supply, and the yield was adjusted to 2,875-3%.
The placement results indicate that investors reacted to the worsening conflict between Russia and Ukraine, and thus no real sanctions against our country in connection with the incident in the Azov sea, the market does not expect. On the other hand, if the main buyers are Russian investors, their interest is associated with an unstable exchange rate. In conditions, when the ruble is more decreases than increases, bonds in foreign currency is much more interesting.
On Wednesday the financial results according to IFRS for 9 months will publish “LUKOIL”. A meeting of the Board of Directors will hold the company “Enel Russia”.
The financial stability report will be published by the Bank of England. Germany will hold the location of the 10-year Treasury bonds. USA will present the world data on GDP for the third quarter of 2018. The States will publish statistics on new housing sales and commercial oil reserves. Speech by the head of the fed Jerome Powell.
The Director of analytical Department,