The Russian stock market declined amid weakening of the ruble

The Russian stock market declined amid weakening of the ruble


The dynamics of oil prices, the main driver for the Russian market, demonstrating instability. The MICEX index to closing has decreased on 1,04% — to 1708,60 points, RTS index — on 1,77% — to 839,57 points, follows from the data of the Moscow exchange.

MOSCOW, 29 Oct. The Russian stock market on Thursday closed in red zone amid ruble depreciation and high volatility of the oil market.

The MICEX index to closing has decreased on 1,04% — to 1708,60 points, RTS index — on 1,77% — to 839,57 points, follows from the data of the Moscow exchange.

December futures for Brent crude grew by 0.05% to 49,08 dollars per barrel.

Growth of actions “Transaero”

Shares of Transaero airlines rose by 24,32% — to 18.4 cents (the day was jumping in 45,33% to of 21.51 ruble) on the investors ‘ hopes for the salvation of the carrier, shares of the airline are growing for the third consecutive day.

Total equity trading volume of “Transaero” has exceeded 600 million rubles, which is comparable to the volume of the auctions preference shares “Surgutneftegaz” and two times lower volume “Rosneft” and VTB, the interest in the shares of the company increased sharply from 21 October.

The major shareholders of the S7 group (includes airline “Siberia” and “Globus”) on Friday will present to creditors the plan of improvement “Transaero”, said a source close to the negotiations.

Also on Thursday, the newspaper Kommersant reported that a specialized Fund under the Malaysian government, Malaysia Airlines restrukturisasi debts, interested in buying Transaero or formation on the basis of its own fleet of aircraft and new airlines focused on Asia.

Last week 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”. Co-owner of “Siberia” Natalia Fileva on Monday confirmed that the shareholders retain the S7 plans to buy “Transaero”.

Corporate history

The shares of MegaFon rose by 2.3% on the recommendation of the Board of Directors of the company to the shareholders to approve dividends for the first nine months of 2015 in the amount 39,996 billion rubles, or 64,51 ruble per share.

Record date shareholders to receive dividends — on December 22.

OJSC “Enel Russia” declined by 3.9% on the background of data on the net loss for the first nine months of the current year.

Net loss of OJSC “Enel Russia” under IFRS for January-September 2015 $ 49,66 billion rubles against a profit of 5,082 billion rubles for the same period last year.

“Enel Russia” has no plans to pay dividends by the end of 2015. According to the representative of the company, the result of the fourth quarter could not compensate the loss in the first nine months of 2015.

Forecasts and recommendations

The main driver for the Russian market still remains the price of oil showing in the last days of instability, says Alexander Kostyukov of “Veles Capital”.

“The most significant event of the Friday we call a meeting of the Board of Directors of the Central Bank of the Russian Federation, the results of which will be announced the rate decision,” he adds.

The MICEX index remains the potential drop in the direction of 1700 points, while the RTS is clearly like the area of 820 points, said Mikhail Krylov from “Golden Hills — Kapital AM”.

Despite expectations of sales, US stocks of oil from strategic reserves, the price of it almost two months are in the range of 47-54 dollars and I can not break the level at $ 47, says Sergey Kochergin of the company Exness.

“Factors stable oil and pressurewise to Russia Western sanctions support the demand for Russian assets. In the short term, Brent crude oil may test the $ 50, and the MICEX index — 1750 points,” he said.

Head of commodities research Bank Julius Baer Norbert Ruecker maintains a neutral Outlook and believes that in the short term, oil will be traded in the range of 50 to 60 dollars per barrel. “The global demand for oil should remain stable, and the reduction in production of shale oil in the US to reduce excess inventory,” he explains.