According to the Moscow exchange, MICEX index on the day declined by 1.78% to 1795,70 points, RTS index – on 2,10%, to 856,30 item.
MOSCOW, Nov 27. Dmitry Mayorov. The Russian stock market by the close of trading declined — before the weekend the players have decided not to increase the portfolios share of the Russian assets.
Geopolitical risks in connection with the crash of the su-24 remains high, and this weighs on market, traders say.
The weakness of the Chinese market also supported the negative.
The MICEX index on the day declined by 1.78% to 1795,70 points, RTS index — on 2,10%, to 856,30 points, according to the Moscow stock exchange.
Down on external negative
The Russian stock market during the session on Friday continued a negative trend.
One of the negative factors was the sale of shares in China, where key indices fell 5-6% on the data about reduction of profits in the industry, and the news that two large Chinese brokers conducted regulatory investigation. Oil prices also brought positive investors and most of the day declined on fears of growth of production of black gold in Libya, said Alexander Kostyukov of IR “Veles Capital”.
From corporate events worth mentioning the publication of statements of Tatneft (-2,3%), the profit of which was below expectations. The financial statements of “inter RAO” (+0,64%) on the contrary gave confidence to the investors about the immediate prospects. Sale of assets in Armenia would not only reduce political risks for the company, but also and will reduce the size of the investment.
Shares of the Moscow exchange rose in price by 2.3%.
Among leaders of decrease on-former papers of Gazprom (-1,8%) and Sberbank (-1.8 per cent). Investors fear the possible suspension of gas of the project “Turkish stream” and difficulties of the savings Bank in connection with its Turkish “daughter” of Denizbank.
The paper of the Bank “URALSIB” has jumped in price by 46.6% in the absence of news.
Forecasts and recommendations
Next week will be full of events: Thursday will be the ECB meeting, the results of which can be signals of new stimulus measures, the event will be the OPEC meeting on December 4, which will be the most important for the Russian market, since the results will depend on medium term dynamics of oil, says Kostiukov from IK “Veles Capital”.
“We expect that investors will prefer to await the outcome of these meetings and will refrain from large transactions,” he added.
Next week investors will continue to monitor the situation around the downed Russian plane, and the main news to come from Paris, where on November 29, will begin the climate summit, bringing together the leaders of many States, said Bogdan Zvarich from THEIR “Finam”.
“Despite the theme of the meeting, and of course openly, and on the sidelines to discuss the situation in Syria and recent developments. So, we can wait for some statements that could have an impact on the situation in the conflict zone, and Russia’s relations with its partners that may determine the direction of movement of our market,” he said.