The Russian stock market is not scared of elections in the U.S. and is growing steadily

  • And
  • +A

The Russian stock market can be assessed as positive. In connection with the elections to the Senate, the dollar will be slightly to take positions on all currency baskets in which it is part. Regarding the ruble, the national currency largely depends on the oil and gas sector and actions of the Ministry of Finance. Regarding the main Russian stock indices are also positively affected the growing stock, are an additional driver of growth even against the backdrop of relatively corrective down oil prices.
Investors in the medium and long term will consider the shares of “Rosneft” for their portfolios. Because a good report under IFRS for the 3rd quarter will serve as an incentive for investment in this Issuer. Revenue increased by 43% while net profit increased by 227% compared to last year. The potential of growth of shares of “Rosneft” can reach 500.00 rubles per share in the short term and 550.00 rubles per share in the medium-term. Also pay attention to the shares of the company “Bashneft”, as they provide a dividend yield above the market.
Washington imposed sanctions against the export of oil to Iran on Monday, but was granted a waiver on its largest customers, which allowed to restrict imports within the next 180 days. Definitywnie data showed that Iranian exports fell to 1 million barrels per day (bpd) in November, compared to about 3 million barrels per day in mid-2018. Japanese refinery JXTG Holdings said Wednesday that he can resume the orders of Iranian oil in December. Anyway the oil and gas sector will affect the markets in General. In this case, Russian investors, diversifying risks, carry out the outflow of capital from the oil and gas sector less risky.
The us stock market was in a phase of high volatility in connection with the elections in the United States. With the Republican party of President Donald trump holding a majority in the Senate, the election results on Tuesday were in line with expectations on wall street that Washington was set to a standstill. However, the White House, controlled by Democrats, would prevent the business program of the trump and may lead to uncertainty in respect of his administration at a time when investors are already worried about what the ten-year bull market could end.
The S&P 500 futures e-mini rose 0.1%, it means that the US stock market today will open with a small gain. After a sharp sell-in October, major U.S. stock indexes fell more than 5% from the highest level, and many investors are concerned that the market may fall even more as inflation grows, and the Federal reserve increases interest rates. Shares in the healthcare sector rallied in the broad market in Europe on Wednesday as the results of the midterm elections in the United States was seen as reducing the likelihood of legislative measures to reduce the medical costs of the largest and most profitable market in the world. Shares of this sector will be extremely interesting to large players.
Gaidar Hasanov
“International Financial Center”