The Russian stock market tries to rally, but so far without success

  • And
  • +A

By the middle of the trading day the main Russian stock indices of RTS and Mosberg slightly increased relative to the levels of the previous closing. They managed to stop their yesterday’s fall in terms of the ambiguous external background. In favor of the local “bulls” was the fact that last night the futures on Brent crude has fully played its sharp intraday drawdown in contrast to the weak weekly statistics reporting the increase in stocks of “black gold” in the United States.
After a positive opening, the index Mosberg managed to gain a foothold around the nearest important level of 2300 p. which is now alternately plays the role of intraday support and resistance.
Among the most significant internal events it is worth noting the statement of the Finance Minister Anton Siluanov that the government will not change taxes over the next six years. Of course, for a long time, this setting may change. And yet, the question itself gives reason for cautious optimism.
Among the important foreign news worth mentioning another statement of the representative of the Netherlands to the Russian involvement in the crash of a Malaysian airliner in Eastern Ukraine in summer 2014. This controversial topic can contribute to a potential reinforcement of external sanctions against Russia. The local stock market has not yet responded to these news.
To 15.20 GMT. index Mosberg increased by 0.03%. The RTS index grew by 0.10%.
June futures on the RTS index (RIM8) are traded in as minor backwardly size p. 3.5, or about 0.3% relative to the reference indicator. Futures market participants were close to the neutral assessment of the immediate prospects of the RTS index.
The small intraday deviation index Masuri most liquid stocks traded mixed with a deviation of 1-3% relative to the levels of the previous close. We will add that in recent days there was quite a lot of interesting corporate events that was reflected in dynamics of separate papers.
Shares of retail network Magnit (MGNТ RM, +2.12%) changed their morning drawdown on a fairly large intraday gain. This morning it became known that VTB group sold part of its stake in the retailer. Buyer 11.82% of the shares of “Magnet” made by Marathon Group.
The Bank’s decision to reduce participation in the capital of “Magnit” was adopted on the basis of a number of important factors. However, the head of VTB Andrey Kostin made the rather paradoxical statement that later VTB may again increase its share in “the Magnet” up to 20%. Perhaps, in this statement lies the desire to maintain quotes, as VTB continues to hold 17.28% of the shares of “Magnet”.
Shares of Mechel JSC (MTLR RM, -4.39%), Mechel-Pref (MTLRP RM, -4.50%) were sales against the publication of production and financial results of the Issuer for the 1st quarter of the current year. Perhaps the most alarming figure was a quarterly reduction in net profit under IFRS attributable to the shareholders of metallurgical campaign at 76% compared to the 1st quarter of 2017. Investors and speculators are particularly sensitive to this indicator because it indirectly indicates the ability of “Mechel” to reduce its debt burden in the medium term.
Currently, the index Mosberg updated its intraday low and is now teetering on the brink of positive and negative changes. Some external negativity made unfavourable statistics from the US, reporting a weekly increase in the number of initial claims for unemployment benefits. Today we expect the prices of Masuri close to the current level of 2295 p., with moderate deviation in the range of 0.5-0.7% on the day.
_____________
Vitaly Manzhos,
Senior risk Manager,
IK “Nord Capital”