The Russian stock market remained without support

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By the middle of the trading day the main Russian stock indices of RTS and Masuri only slightly increased relative to the levels of the previous closing. After a mildly positive open they again went into a state already protracted consolidation. An obstacle for further growth of the local stock market was a rapid deterioration in sentiment in the oil market. Futures for Brent oil rather abruptly changed its notable intra-day gains on an insignificant drawdown.
By the way, today it became known that members of the OPEC oil cartel reduced total daily production of “black gold” in February to its lowest level in 4 years. However, in connection with the current production growth in the US, even the maintenance of oil prices at current levels may require stricter production quotas for the participants of the international agreement in the format of OPEC+.
Among the significant foreign policy events worth noting is the news that the EU imposed targeted sanctions against eight Russians in connection with the incident in the Kerch Strait. In addition, was extended already in effect, individual sanctions related to events in Ukraine. Thus, currently the European Union is limited to the use of restrictive measures against the rather narrow circle of individuals. Such a “toothless” the position of the EU is quite satisfied with the members of the Russian trading. It does not threaten the share prices of major Russian companies.
By 15: 00 Moscow time the index of Masuri increased by 0.14%. The RTS index gained 0.38%. March futures on the RTS index (RIH9) traded in a state of parity relative to the reference indicator. Thus, the futures market participants remain close to neutral evaluation of the medium-term prospects of the RTS index.
On the background of insignificant increase of the intraday index Masuri most liquid stocks traded mixed with a moderate deviation in the range of 1-2% relative to the levels of the previous close.
Shares of GMK Norilsk Nickel (GMKN RM, +1.45%) continue to rebuild after the recent strong subsidence. She has been associated with sudden placement of around 1.7% of these securities with a significant discount to market value at the price of 13450 RUB Corrective growth of these securities spurred a statement by one of the beneficiaries of the company Crispian Investments that it has no plans to continue reducing its stake in the “Norilsk Nickel” in the near future.
Shares of Uralkali (URKA RM, -1.01%) fell markedly against the background of the publication of the annual financial statements of the potash company. Despite a noticeable increase in profits, it recorded a net annual loss of $ 8.85 billion RUB compared to sales profit of $ 50.86 billion at year-end 2017. However, the former interest of investors and speculators in the shares of “Uralkali” has long been lost due to the expected delisting of these securities on the Moscow exchange.
Significant corporate event was the publication of the actual financial results of diamond miner ALROSA (ALRS RM, -0.65%) under IFRS. Its annual net profit increased by 15% and amounted to 90 billion rubles. This was possible due to significant improvement in profitability. At the same time, by results of 4 quarter net profit fell by 52% due to the inclusion in the income rolling in 2018 indemnity.
Currently, the index continues Mosberg lateral movement around its opening, near the 2460. To the end of the day the local stock market has yet to play a formal publication of the preliminary March index of consumer confidence in the United States from the University of Michigan (17.00 MSK). In General, we expect the prices of Masuri near current levels, with a moderate deviation in the range of 0.5-0.7% on the day.
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Vitaly Manzhos,
Senior risk Manager,
IR “Algo Capital”