The Russian stock market is in the standby mode

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The Russian stock market is in the standby mode, as investors watch for OPEC meeting+ in Vienna and are awaiting a decision from Russia’s reductions. Therefore, the external background has to some extent the pressure on the Russian stock market. The defensive securities include shares of company “Surgutneftegaz”, which traditionally enjoyed great success at the expense of dividend payments, and in fact are protective assets. The company’s shares could rise in the short term at +1.2%. Also the shares of “Magnet” ongoing corrective wave.
The trading network is implementing a program to repurchase shares in the market. With this amendment we can say that the value of the securities will be evaluated by the market in 4000 rubles. Also today, can continue the growth shares of the following companies: MMK (MCX: MAGN), the expected increase of +0.5%, Rostelecom JSC (MCX: RTKM), may be added +0.2%, Polymetal (MCX: POLY), growth potential will be +0.2%, RussNeft (RNFT), the expected rise of +1.4%. In General terms, the Russian stock market there is no reason for the strong reduction of the indices. Anyway positive news from the oil market. A matter of time.
Wall Street to end the trading session played a morning decline as the Federal reserve considers the possibility of suspending the rate hikes. The energy sector fell as crude oil prices in the U.S. fell after the weekly petroleum data from the Energy information Administration showed that domestic supplies of crude oil fell sharply. But production in the United States, which remained at record highs, will continue.
Against this background, the Exxon Mobil (NYSE: XOM) fell 1.3%, Chesapeake Energy (NYSE: CHK) fell by 6%, and marathon oil (NYSE: MRO) fell by 3.6%. Investors are worried that after the arrest of the chief financial officer of Huawei Meng Wanzhou, the trade war between the United States and China can find a new branch of negative development.
Elsewhere, shares of banks under the most pressure from the ongoing decline in government bond yields USA. Financial officer of Citigroup John Gerspach said Wednesday that the Bank expects market revenue in the current quarter will be slightly lower than last year, while the company’s shares declined 3.5%. Before the weekend the us stock indices might be corrected downwards on a background of fixing of profit by the big investors.
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Gaidar Hasanov
Expert
“International financial center”