The Russian stock market tries to emerge from its peak
The index Mosberg with a slight increase of about 0.2-0.3%, near the 2655 p. as the nearest supports will be the levels, 2640, 2630 p. Significant resistance is seen around 2670, 2680 p.
After moderately positive opening, the index Mosberg may continue a corrective rise in the area of 2670 p. We can see in this bit of technical bounce after a notable two-day drawdown.
In the afternoon members of the local trades will be used to focus on the dynamics of oil futures. Indirect influence on the course of trading in Russia may have the publication of the June statistics on the number of vacancies in the labor market in the United States (17.00 GMT).
On Monday, the main Russian stock indices Mosberg (-0.96%) and RTS (-0.84%) ended with a strong decrease towards the levels of the previous closing. Members of the local trades could not and did not want to ignore the clearly negative external background. Yesterday key Western stock indices in Europe and the US lost 2% to 3.5%, which is admittedly very strong drawdown. His negative role played and the dangerous slide of the futures on Brent crude to the nearest significant price level of $60 per barrel.
The main negative for global stock markets made a mutual resumption of hostile actions between China and the United States in the framework of a protracted trade war. In response to the President promised US the additional increase of import tariffs the Chinese government ordered the cessation of purchases by state companies of the North American agricultural products. In addition, on Monday, the Chinese yuan has significantly weakened against the U.S. dollar, which partially offsets the negative effect of increasing import customs duties in the U.S. on products from China.
Returning to the state of the Russian stock market, it is worth noting that the ruble index Mosberg yesterday met the expected support near the important level of 2500 p. Today, he can demonstrate a corrective bounce from the mentioned level. We add that members of the local trading yesterday osmislili new restrictive measures against Russia from the United States. The fact that they currently are not painful in nature, was generally perceived as positive. But do not forget that external sanctions are phased in over a fairly long period of time. Therefore, their relative softness is interpreted as just another postponement.
At the close of formal trading session September futures on the RTS index (RIU9) came in as a moderate backwardly a magnitude of 4.8 points, or about 0.5% relative to the reference indicator. Futures market participants were close to the neutral assessment of the medium-term prospects of the RTS index.
In spite of the decline in the index Mosberg held at the end of the day, the most liquid stocks ended mostly lower in the range of 1-4% compared to the levels of the previous close. The day was extremely poor for significant corporate news. Therefore, significant movements in individual securities were associated with the events of the previous days, with technical factors.
Significantly weaker than the market traded shares of the representatives of the consumer sector and trade: clA Yandex (YNDX RM, -4.06%), FIVE-GDR (FIVE RM, -3.65%), RR (OBUV RM, -2.96%), Magnet (MGNТ RM, -2.95%). Obviously, the weakness of these securities was associated with the recent sharp weakening of the ruble. The experience of many years we know that this factor has a negative impact on consumer spending in the medium term.
With the exception of its sector merely became a paper pharmaceutical company PROTEK (PRTK RM, +0.43%) and retail chains Detsky Mir (DSKY RM, +0.20%). A clear positive for the stock “Children’s world” was made by the publication of the interim financial statements of the Issuer for the company. She pointed to the strong semi-annual increase in net profit of the retailer to 1.47 billion RUB compared to 0.69 billion RUB, the company informed.
It is also worth noting yesterday’s weakness in shares of Aeroflot (AFLT RM, -2.93%). They had their own reason for advancing fall. Clearly, investors and speculators remembered that “Aeroflot” can be introduced targeted sanctions. This did not happen in early August. However, such a measure could be undertaken in the future. Among the potential restrictive measures that may be declared in respect of the Russian Federation later, there is a ban on flights in the U.S. airlines that are directly or indirectly controlled by the state.
Among blue chips significantly stronger than the market was closed the papers Sberbank JSC (SBER RM, +0.65%). Their last increase was purely corrective in nature.
Shares of Polyus (PLZL RM, +5.14%) accelerated its two-month rise, and once again updated the long-term maximum. Paper gold-mining company have demand in the backdrop of significant medium-term growth in the value of the yellow metal and a significant weakening of the ruble.
This morning the futures on US stock indices show an uneven increase in the cost in the range of 0.2-0.5%. Contracts for Brent crude rose by 1.0%. Gold futures fell in price by 0.2%. The Chinese Shanghai Composite index dropped 1.4 percent. Nikkei225 declined by 0.9%.
The external background before bidding in Russia can be described as mixed. However, the morning improving sentiment in the oil market creates conditions for the opening of index Mosberg with slight increase.
Senior risk Manager,
IR “Algo Capital”