MOSCOW, December 17. The stock indices of the Russian Federation ended the trading session higher. So, the MICEX index (MICEX) by the end of trading on the Moscow exchange on Thursday rose by 1.5% to 1780,97 points, and RTS has grown on 0,9% to 792,07 item.
The cost of futures for oil of mark Brent with delivery in February 2016 on the ICE stock exchange in London grew by 0.11% to $37,44 per barrel. The price of oil is stabilising after falling earlier in the week to lows not seen since December 2008.
On the powerful momentum generated by the press conference of the President of Russia Vladimir Putin, the Russian stock market is likely to continue the rally during the entire new year period, said the Director of analytical Department IK “Golden Hills – Kapital AM” Mikhail Krylov.
Big press conference Putin
The President of Russia Vladimir Putin on 17 December, for the eleventh time, have collected journalists on a press conference. Annual report of the head of state was held in world trade Center (WTC). This year on the “big” press conference accredited a record number of journalists – 1390 the media. At the first press conference Putin in 2001, there were accredited more than 500 journalists, in 2002 and 2003 – over 700 in 2004 to about 750 in 2007 – 1132, 2008 – 1364, 2013 – 1327, 2014 – 1259.
Big press conference Putin. Key statements on the economy
“The market reacted positively to the interest and deep knowledge of the Russian President on current economic issues our country in General and each individual. Statements on agriculture and underlined the development of the defense complex convincingly demonstrated a competitive advantage the Russian Federation in international trade. In the coming days we will see 1820 points on the MICEX index, and 820 points on RTS index” – predicts expert.
In addition, the Russian market supports the preservation of the U.S. stock indices high levels reached recently. Thus, trading in the United States today has begun weak growth index, the S&P 500 and Dow Jones began to decline 0.4 to 0.5%. “Bouncing off the other day from a horizontal support at 1990 points, the S&P 500 began climbing upstairs. While the S&P 500 held above 2040 points, the positive scenario implies a rise in the area of 2100 points”, – believes the expert of “BCS Express” Olga Kholodenko.
Growth indexes Dow Jones and S&P 500 in the U.S. amounted to 1,3-1,5% after the decision of the U.S. Federal reserve to increase base interest rate for the first time since 2006.
Yesterday the fed decided to raise rates by 25bps.p. to 0,25-0,5%. Basic discount rate the fed last raised in June 2006. From December 2008 to date it has remained almost at zero – 0-0,25%.
Shares of “Rosneft” has risen at the fastest rate since October
Shares of “Rosneft” on the Moscow stock exchange closed higher on Thursday by 4.3% – the fastest rate since October 260,95 to RUB the Growth of Rosneft shares is the maximum intraday rate since 9 October, when the price of the company’s shares on the Moscow stock exchange for the day rose to 5.53 percent.
The growth of the company’s shares in the first place was the potential privatization next year, says senior Manager for research and analysis of industries and capital markets PSB Ilya Frolov.
Oil prices, the budget and pension system: what Putin said about the Russian economy
“Actually, the President of the Russian Federation Vladimir Putin has today confirmed the expectations and rumors that went on the market last week. I think that the potential SPO of “Rosneft” probably early next year. I think that with the beginning of the year will begin, perhaps, some pre-marketing already, search for potential anchor investors”, – said Frolov.
The President of Russia Vladimir Putin during a big press conference today said that does not rule out that in 2016, not to “burn down the reserves,” the government will agree to the privatisation of large state companies. He recalled that in 2015 the Russian government has not taken decisions on privatization of large state-owned companies.
“I think that everything revolves around privatization. If you are going to privatize, all the same price “Rosneft” should be higher. In our market now has become a very popular trend, especially among state-owned companies, rather unreasonably to grow against the market. It is typical for state-owned banks – VTB and Sberbank. “Rosneft” is no exception. I think today’s rise is associated with privatization and with higher desire to sell the company,” says senior portfolio Manager “MC Kapital” Vadim Bit-Avragim.
Earlier this year VTB’s shares from April 24 to 27 may sharply rose in price by 48%, and the MICEX index over the same period fell 1%. In addition, the ordinary shares of Sberbank from 2 October to 23 November increased by 51.2%. The MICEX index during this period increased by 16%.
Prospective investors to conduct SPO “Rosneft” can be found in China. On December 17 in Beijing was signed a Memorandum of understanding with the Chinese group Sinopec. Within the document, Rosneft and Sinopec will cooperate in the projects of the petrochemical industry in Eastern Siberia. In addition, the head of “Rosneft” Igor Sechin said today in Beijing that “Rosneft” will keep dividends at 25% IFRS net profit, despite the drop in oil prices. It also could be a factor in the growth of the company’s shares, said Vadim Bit-Avragim of “UK Capital”.
“Maybe the investors think that the Chinese just may become the very anchor investors, in the first place, can participate in this placement of “Rosneft”. The company still is under European and American sanctions. In fact, in addition to Chinese companies, in principle, there is no one else to buy. But the Chinese are showing interest in Russian assets. We see the transaction on participation in “SIBUR”, the project “LNG image format” they also show interest,” adds Ilya Frolov from PSB.