The Russian stock market recalled the sanctions

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The Russian market began the trading environment differently. Index Mosberg rose to week highs, gaining 0.4% over the expense of a neutral external background and easing of the ruble. RTS is located slightly below the opening level, while Russia’s currency lost 0.4 percent against the dollar and the Euro. The oil market continues to give positive signals, but it is insufficient in conditions of General nervous investors because of the sanctions factor and in anticipation of the resumption of negotiations between the US and China.
Shares of Mechel grow by 1.2% after reporting. In the first half, the company reduced coal production by 6% yoy, pig iron production over the same period fell by 5%. In the second quarter, both indicators also showed a decline by 5% and 4% quarter-over-quarter equivalent, respectively. The lack of negative investor reaction to the report confirmed that the results were expected.
Net profit of FGC UES in accordance with IFRS declined in the second quarter by 14.4% compared with the figure for the same period last year. In the first half net profit rose almost 30%. The revenue of energy companies in the second quarter increased by 9.6%, while operating expenses increased by 26.6%. Profit before tax declines by 16.3%.Revenue in January-June rose by 15.6%.Quotes FGC UES traded with a modest increase in the range of 0.3%.
Because the tension in severe sanctions issue remains high, even in a favorable situation on other fronts, the growth potential of the Russian market will remain limited due to the decrease in the attractiveness of domestic assets. By the way, on the eve of U.S. Senator Mitch McConnell said Congress can impose new sanctions against Russia after the midterm elections in November. And Russia, meanwhile, has developed a response to new US sanctions.
Igor Kovalyov,
InstaForex companies group