The Russian stock market: Large investors have returned to purchases

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The Russian stock market opened positive on the last day of the year. For the first time in more than a week oil prices West Texas Intermediate remained high during most part of the day, despite the fact that US stocks during the day fluctuated between positive and negative territory. Yesterday, oil prices surged on Friday, despite a decline in oil reserves in the United States less than 50 000 barrels reported by the energy information Administration (EIA) last week.
The market had predicted a drop to 2.87 million barrels. Fears of a global economic downturn and the continued partial closure of the US government are forcing oil traders daily look at the stock market, and not on the main energy indicators.
Despite this the shares of the oil and gas sector has grown considerably this year. “Gazprom oil” has risen by 43%, ordinary shares of “Tatneft” have grown on 39,89%, LUKOIL – on 48,3%, “Rosneft” growth for the year was of 46.12%. Shares of Gazprom went up by 17%. From 2019 on the background of strengthening global oil prices, the Russian oil and gas companies continues to rise. This will have a positive impact on the national currency in any case.
Wall street, after a crazy Christmas week of trading slightly down after another attempt to rally at the end of the day was quiet at the close. During the week, shortened by the weekend, the S & P index increased by about 2.8%, the Dow rose more than 2.7%, and the Nasdaq jumped about 4%. The technology sector managed to show a little power of recovery in the semiconductor sector from the previous session.
Company Advanced Micro Devices (NASDAQ: AMD) went up by +1,9%, and Intel (NASDAQ: INTC) rose by +0.8 percent. Shares of Tesla (NASDAQ: TSLA) jumped 5.6% after the co-founder of electric manufacturer Oracle (NYSE: ORCL) Larry Ellison joined the Board of Directors in response to the requirement of the US regulators about the independent supervision of the management of the company. A company “Dell Technologies” returned to public markets after nearly six years after founder and CEO Michael Dell went into private business.
In General, the markets closed on a positive note. This suggests that large market participants returned to the markets. And next year the markets will continue strong growth.
Happy New year 2019!
Gaidar Hasanov
“International financial center”