The Russian stock market supported the demand for OFZ and growth rate

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The Russian stock market finished Wednesday’s trading in positive territory on the background of continuing growth in crude oil prices, the strengthening ruble and demand for OFZ Treasury. Positive for the market is the new U.S. statement on the resumption of negotiations on customs duties between the US and China, as well as States and Canada. The market once again hoped for the best.
Among the leaders who grew up in the price of securities at the end of trading were shares of telecommunications companies (+1.84%), financial (+1.63%) and engineering (+0.87%) sectors. Among the fallen of the securities leading stock companies of the petrochemical sector (-0.68%).
The MICEX index finished trading up 0.23% and closed at 2340.63 points. The RTS index was closed by confident growth by 1.46% and stood at 1071.32 points amid continued growth of the ruble against the Euro and the U.S. dollar.
The price of crude oil by the end of trading in Russia grew amid a hurricane “Florence,” as well as a sharp fall in stocks of crude oil from the U.S. Department of energy last week. Crude oil inventories decreased by 5.296 million barrels. North sea oil of mark BRENT by the end of trading in Russia rose by 0.66% to 79.58 per barrel.
West Texas WTI soared 2.12% to 70.72 per barrel.
In the currency market the ruble to the end of the regular trading session steadily rose against the dollar and Euro in the Wake of continuing demand for OFZ bonds, the growth of prices for crude oil and expectations of inflow of significant amount of foreign currency earnings by exporters. The USD/ruble with tomorrow calculation at the end of the trading session fell by 0.86% to 68.83 rubles per dollar. The Euro/ruble with tomorrow calculation fell by 0.68% to 80.03 rubles for one Euro.
We expect to continue local adjustment of the ruble. While talking about the beginning of a serious reversal is not necessary.
The events of the day:
On Thursday we should pay attention to employment data in Australia, consumer inflation in Germany and the producer price index in Switzerland. The meeting of EU Finance Ministers. But the Central event will be the outcome of the ECB meeting on monetary policy, press conference Draghi and values of consumer inflation in the United States.
It is also expected the speech of FOMC member Bostika.
Sergey Kozlovsky,
Head of analytical Department,
Grand Capital