The stock market day is declining under pressure from weak oil and ruble

The stock market day is declining under pressure from weak oil and ruble


Amid a sharp weakening of the ruble, the MICEX index by 15.35 Moscow time has decreased on 0,53% – to 1725 points, the RTS index – on 2,6% to 753 points. Weak dynamics of oil market reduced demand for Russian assets.

MOSCOW, 28 Dec. Dmitry Mayorov. The Russian stock market in the middle of trading on Monday fell on a background of a sharp weakening of the ruble. Weak dynamics of oil market reduced demand for Russian assets, say traders.

The MICEX index to 15.35 Moscow time has decreased on 0,53% — to 1725 points, the RTS index – on 2,6% to 753 points, follows from the data of the Moscow exchange.

After oil and the ruble

The Russian stock market in the first half of the day was trading mostly in the red. A major factor of weakness of the dynamics of Russian assets was the decrease of the oil market.

Players of the energy market fear regarding oversupply in the market ahead of the publication of the data environment U.S. Department of energy on oil reserves in the country.

Against this background, the ruble has lost earlier in the week about 2% against the major reserve currencies, which resulted in a decline of currency RTS index by more than 2%. The ruble-denominated MICEX index lost only about 0.4%.

Among leaders of decrease are highlighted banking shares suffering from the weak ruble. Paper VTB falling 1.1%, Sberbank – by 1.3%, ALROSA – 4%.

The growth leaders – the prefs of Transneft (down 2.6%).

Forecasts

It is not excluded that to the middle of the coming week we will see oil at around 39-40 per barrel, says Alexander Potavin from “Management Savings”.

“Today is the last day investors can buy shares of MMC Norilsk Nickel for the collection of dividends for 9 months of this year (321,95 rubles)”, — he added.

During the day, the MICEX index may fall to 1715 points, as in the oil market is not yet confirmed the formation of a technical bottom, praised Mikhail Krylov from the IR “Golden Hills – Kapital AM”.

Investor activity remains low, largely due to past and upcoming holidays, says Anton Startsev from the company “OLMA”.

“So, in the UK today are continuing the Christmas holidays, trading on the London stock exchange in native mode are not conducted. In the U.S. the auction will be held in normal mode, but important for the market events is not expected and, therefore, looks likely pre-new year lull. From the standpoint of technical analysis, strong movements in the Russian market can be expected in case of an exit of an index of RTS outside of the consolidation range 750 points 800 points”, — he added.