The Russian stock market is trading hesitantly

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The Russian stock market began trading Monday neutral. After a moderate drawdown at the opening index Mosberg come out and rises between 0.4%, in part due to the weakening of the ruble. RTS also slightly weakens under the influence of the monetary factor. The ruble is trading down 0.2% against the dollar and the Euro. Ambiguous external background is partially mitigated due to the recovery in oil prices – Brent is testing the level 74.
Rosneft announced a share buyback worth $2 billion Program will last until the end of 2020. The maximum amount of shares and global Depositary receipts is set at not more than 340 million units. All the shares acquired under the program will be placed on the balance sheet of Rosneft. The quotations of the company on Monday added 1,8%, including the recovery of world oil prices.
Shares of TGC-1 raliroad more than 2.5%, reflecting the positive financial statements for the second quarter. Revenue increased by 1% in annual terms. Operating expenses decreased by 3% and operating profit jumped 28% in the annual equivalent. EBITDA increased by 13% compared with the second quarter of 2017. Net profit for the period increased by 23% yoy.
In the absence of positive drivers, and the continuing caution by international investors against the backdrop of escalating trade conflict between the US and China to rely on sustainable growth of the Russian market in the near future is not necessary. The strengthening in oil prices, despite the current recovery, also does not inspire confidence. For a more confident Outlook, it is necessary the confirmation of the breakdown level 74 and Brent daily close above this level.
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Igor Kovalyov,
Analyst
InstaForex companies group