The Russian stock market is vulnerable to a number of risks

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On Monday the leading stock indexes of the Russian Federation demonstrate multidirectional dynamics. RTS is trading in negative territory by 0.5% under the influence of the monetary factor, which also maintains an index of Masuri, added within a quarter percent. Holding back the manifestation of the negative moderately positive external background, where the European markets are trading in positive territory, and a small upward bias in prices. Brent is back above 77, but success is not achieved. The dollar has updated the 2.5-letnia highs in tandem with the ruble, having tested the mark of 70 rubles.
Sensitive to sanctions rhetoric, which has recently been aggravated from Britain, the shares of “savings” once again taking the hit. Quotes losing nearly 2% intraday. Moreover, this factor was much stronger than what the Bank reported good financial results for the first eight months of the current year. Net profit of Sberbank under RAS for the reporting period grew by 25% yoy, and in August, 18%. Such growth was recorded largely due to higher net interest income, which increased by almost 6%, whereas net fee and Commission income increased by 25%.
This week the Russian market will follow the hearings in the U.S. Senate on the topic of the technical aspects of the sanctions against Russia, which will take place on Wednesday. In the short term domestic assets will remain vulnerable amid economic tension, which is complemented by other risk factors, including the escalation of trade wars and the situation in emerging markets. The inability of the oil to attract buyers, would weaken the position of our market.
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Igor Kovalyov,
Analyst
InstaForex companies group