Support to the Russian market, according to analysts, continues to provide a change of sentiment on the news about the strengthening of cooperation between Russia and the West after the terrorist attacks in Paris. The MICEX index to 16.10 MSC grew by 0.71% to 1823,55 item.
MOSCOW, 19 Nov. The Russian stock market on Thursday, rising moderately on the major indices amid positive investor sentiment, despite the volatility in oil prices.
The MICEX index to 16.10 MSC grew by 0.71% to 1823,55 points (day rose to 1841,97 item, updating a high of 17 February), the RTS index — on 0,94%, to 884,82 points, follows from the data of the Moscow exchange.
The dollar calculations “tomorrow” going up 17 cents to 64,93 of the rouble, the Euro rate — by 41 penny to 69,42 ruble.
Thursday in early trading continued increase in the RTS index, explained in part by expectations of easing of relations between Russia and Western countries, partly due to favourable reaction on the transcript of the October meeting of the Federal open market Committee of the fed, notes a leading analyst of investment “OLMA” Anton Startsev.
“Soon there were signs of increasing pause — from the standpoint of technical analysis, was met with some resistance near 200-day moving average of RTS index” — he adds.
Leaders and outsiders
Among leaders of growth — shares in Polyus Gold (4,41%), “Pharmstandard” (3,88%), NCSP (3,09%), ordinary shares of “Mechel” (3,07%), Sberbank shares (ordinary shares grow on 2,87%, prefs — on 2,76%), the shares of “MegaFon” (2,79%), prefs of Tatneft (2,72%), prefs of Transneft (2,61%).
Among leaders of decrease — actions “Pharmacy chain 36 and 6” (-5,16%), “Enel Russia” (-2,52%), papers “Rostelecom” (ordinary shares decreased by 1.7%, prefs — 1.25%), NLMK shares (-1,63%), “Rosneft” (-1,55%), Mostotrest (-1,28%), as well as the shares of “Gazprom Neft” (-1,25%).
Forecasts and recommendations
Support to the Russian market continues to provide a change of sentiment on the news about the strengthening of cooperation between Russia and the West after the terrorist attacks in Paris, according to analysts of “Sberbank CIB”.
“Over the past period, the RTS index rose by 7.6%, however, we believe that further strong growth in the market would need more substantial evidence that relations are improving. While that growth seems excessive, and soon can be rolled back amid profit-taking”, they say.
The MICEX index will hold an auction Thursday in the range 1785-1835 points, said Alexander Razuvaev of “Alpari”. “The rally on Russian markets “blown away” in the volume, which once again proves his emotional nature,” he commented.
The MICEX index due to the increase in the last days reached the level of 1840 points, which is the annual high set in February, and the nearest resistance, notes the analyst investholding “Finam” Bogdan Zvarich.
The breakout of this level may lead to activation of buyers, and the result will be faster growth, he said. However, for the development of this scenario required a new incentive for purchases, which may be the resumption of growth in oil prices, says analyst.
“In the current situation, it is possible that from this level the market will undertake attempts of corrective decline connected with profit fixation on long positions. This will relieve some overbought in Russian securities. However, in the future we can expect attempts of resumption of the upward dynamics and establish new annual highs,” he commented.