The Russian stock market declines amid falling oil prices

The Russian stock market declines amid falling oil prices


Russian Playground will continue to be under the influence of the dynamics of oil prices, said analysts. The MICEX index by 16.51 Moscow time decreased by 0.74% to 1709,98 points, the RTS index fell by 2.3% to 855,43 points, follows from the data of the Moscow exchange.

MOSCOW, 21 Oct. The Russian stock market on Wednesday evening auction is in red zone amid falling oil prices mark Brent in the area is 48 dollars per barrel.

The MICEX index by 16.51 Moscow time decreased by 0.74% to 1709,98 points, the RTS index fell by 2.3% to 855,43 points, follows from the data of the Moscow exchange.

The dollar calculations “tomorrow” grew by 88 cents to 62,99 ruble, Euro — by 97 cents to 71.46 ruble.

The November futures for oil of mark Brent has decreased on 1,43% — to 48,02 dollars per barrel.

The main Russian stock indices MICEX and RTS fell unevenly against the previous closing levels, says Vitaly Manzhos from the Bank “Education”.

“Another change of mood on the currency market became the reason of an advance drawdown of dollar RTS index. At the same time, the ruble-denominated MICEX index still managed to stay in the middle part of a three day range, limited marks 1702-1723 points. It visible drop doesn’t seem threatening in the medium term,” he commented.

The Rise Of “Transaero”

Action “Transaero” to 16.51 GMT rose 2.5% to 17,09 ruble. Day shares of the carrier rose nearly three times to $ 19.5 rubles.

On Tuesday evening it became known that the group shareholder of S7 airlines Vladislav Filev has signed an agreement to purchase not less than 51% of actions “Transaero”. This message caused a rally of actions “Transaero” on the domestic stock market. Moscow exchange was several times extended the corridor, resulting in the shares of the carrier jumped 187%, to 19.5 rubles.

After the next raising to 19.5 per ruble of proposals for sale of actions “Transaero” was not. However, after the speech of the first Deputy Prime Minister Igor Shuvalov, who declared that law enforcement bodies of the Russian Federation is to look at the situation with Transaero airlines, speculators began to take profits.

Shuvalov also said that standing on the verge of bankruptcy, the airline “Transaero” will leave the market, and its routes and the best part of the Park of planes will be other carriers.

Previously co-owner of “Siberia” Natalia Fileva has informed that the shareholders of the group of airlines S7 (“Siberia”) retain plans to buy the airline “Transaero”, despite the planned revocation of the latest certificate of the operator. The Federal air transport Agency has not received any documentary evidence about the plans of acquisition Transaero S7 shareholders, said the head of Department Alexander Neradko.

Against this background of the action “Aeroflot” remained under pressure and lose of 4.16%.

Leaders and outsiders

Among leaders of growth — actions “Russian grids” (5,9%), FGC UES (4,81%), “Enel Russia” (3,29%), MMK (2,29%), the shares of “inter RAO” (1.93%) and the shares of “MegaFon” (1,62%).

Among leaders of decrease — actions of VSMPO-AVISMA (-3,62%), the shares of Norilsk Nickel (-2,96%), prefs of Transneft (-2,48%), Sberbank prefs (-2,36%), the shares of ALROSA (-2,23%),

Forecasts and recommendations

The end of the day members of the local trades will continue to focus on the nature of changes in the cost of oil futures, believes Manzhos from the Bank “Education”.

“The impetus for the recovery in the oil market may be evening publish weekly data about change of stocks of oil and oil products in the USA (17.30 GMT). In General, we expect the closing of the MICEX index in the range of 1700-1710 points, with a decrease of about 1% at the end of the day,” he comments.

Depressed state of “black gold” due to nervous anticipation of statements from the key figures of the oil market within OPEC technical meeting which can stir up, including, and domestic stock indices, says Igor Kovalyov from the “InstaForex”.

The MICEX index will hold an auction until the end of the day in the range 1705-1735 points, believes Aleksandr Razuvaev of “Alpari”. In the case of increased sales in the commodities market may test level of 1700 points and the decline to the mark of 1690 points, he said.