The stock market closed lower amid weakening ruble

The stock market closed lower amid weakening ruble

According to the Moscow exchange, MICEX index to closing has decreased to 1739,96 points, RTS index – to 831,95 item, updating at least since 28 October, amid weakening of the ruble against the dollar and the Euro.

MOSCOW, 12 Nov. Elena Likova. The Russian stock market on Thursday fell for the main indices on the background of weakening of the ruble against the dollar and the Euro.

The MICEX index to closing has decreased on 0,03% — to 1739,96 points, RTS index — on 1,63% — to 831,95 item, updating at least since 28 October, follows from the data of the Moscow exchange.

Corporate history

The campaign “E. on Russia” (“daughter” of the international energy concern E. On) was up 0.6%, despite the decrease in net income under IFRS attributable to the shareholders of the company, in the first nine months in annual terms by 37 percent, to 7,429 billion.

According to the company, the main reason for the decline in revenues associated with two non-systemic factors: stop at Surgutskaya GRES-2 in connection with the accident in January this year and the accrual of penalties for delay of commissioning of unit No. 3 at Berezovskaya GRES.

“Excluding these factors reduced revenues would have amounted to 5-8%. Main business of the company “E. on Russia” stable and will be strengthened further with the commissioning of new power unit at Berezovskaya GRES in October this year”, — stated in the message of the company.

Leaders and outsiders

Action “Transaero” in the first half of the trading day has risen by nearly 50% after a fall of 29% since the beginning of the week. To the close of the action “Transaero” has increased by 25,45% to 12,57 ruble.

Among leaders of growth — actions MMK (3,2%), Uralkali (3%), PhosAgro (1,7%), as well as shares of Gazprom (1,2%), MTS (0.8 per cent).

Among leaders of decrease — actions of the Moscow exchange (-4,1%), “Sollers” (-1,8%), “Rostelecom” (-2,4%), and shares of Yandex (term and 1.9%), TMK (-1,3%).

Forecasts and recommendations

On Friday, the MICEX index may fall to 1723,1 points, and the RTS index — to 819,1 paragraph on the background of negative expectations on the oil market because of the rise of the dollar on the possible shifts in the monetary policy of the fed, said Mikhail Krylov from “Golden Hills — Kapital AM”.

Reasons for optimism regarding the domestic market has created a news in the media that the Ministry has prepared a decree according to which all public companies will have to pay shareholders 25% of IFRS net profit, if it will exceed the results under Russian accounting standards, notes the analyst of MC “Raiffeisen Capital” Sofia Kirsanova.

“Certainly, the entry into force of this order will become a positive for most blue chips and other companies with state participation. Probably the greatest commodity percentage increase in payments can show the electric power industry companies, the main investment case in the last year was just that (the transition from payments in accordance with RAS to IFRS)”, says she.

In addition to local market participants the news needs to attract foreign investors, since the dividend yield of Russian issuers has always been one of the main factors of attractiveness, the analyst adds.