On the negative external background and fall in oil futures mark Brent on Monday the major indices on the Russian stock market had fallen sharply to multi-month lows.
MOSCOW, 11 Jan. Elena Likova. The share market of the Russian Federation on Monday suffers significant losses across all sectors, which led to a sharp decline in major indices in early trading to multi-month lows against external negativity and the fall in oil futures mark Brent.
According to analysts, sales of Russian stocks can be observed until the end of trading on Monday.
The MICEX index by 14.11 GMT fell on 3,22% — to 1692,29 points, RTS index — on 4,03%, to 707,11 points, follows from the data of the Moscow exchange.
The dollar calculations “tomorrow” grows by 0.66 ruble — to 75,42 of the ruble, the Euro — 1.63 ruble to ruble 82,25.
The March futures for Brent oil falls to 2.28% up to 33,15 dollars per barrel.
The Russian market opened Monday sales on the background of “managed devaluation” of the yuan and the collapse of the global indices during the previous days. In the first week of January, the stock market of the Russian Federation due to Christmas weekend and was able to play started in the global market negative trend, and the collapse of oil prices, which led to a sharp drop in the MICEX and RTS indexes on Monday, analysts say.
As a result, the MICEX index dropped to 1689,86 item for the first time since 9 October 2015, the RTS index — up to 701,21 item for the first time since December 17, 2014.
“Managed devaluation of the yuan and rising geopolitical tensions pushed investors to sell risky assets,” says chief analyst of “VTB 24” Stanislav Kleshchev.
The most important factor contributing to the decline in equity markets and decline in oil prices, the turbulence in China, where the Shanghai Composite index in the first week of January fell by more than 12%, says analyst “Sberbank CIB” Cole Axon.
Trading session on Monday with Shanghai Composite also finished in a serious disadvantage (-5,33%).
Leaders of the fall
In plus to the current time are traded only the shares of Uralkali (1,15%), PhosAgro (0,35%), “Pharmstandard” (0,18%), Polymetal (0,16%) and Moscow exchange (0,07%).
The greatest decrease in show shares “Yandex” (-6,96%), Magnit (-5,69%), M. Video (-4,66%), and securities of Sberbank (prefs fall of 3.64%, ordinary shares – on 3,92%), MTS (-3,86%).
Among the leaders of the fall in the oil and gas sector of the action “Rosneft” (-4,22%) and LUKOIL (-4%).
In the electricity sector the greatest decrease in show shares “inter RAO UES” (-4,01%), “FGC UES” (-2,86%).
In metallurgical sector the heaviest falling stocks of Norilsk Nickel (-4,48%), TMK (is -3.5%) and ordinary shares of “Mechel” (-3,27%).
Forecasts and recommendations
The expected decline in market at the end of the day on a wave of pending sales, said Valery Yevdokimov from Nordea Bank.
The MICEX index will hold an auction Monday in the range 1690-1715 points, predicts Alexander Razuvaev of “Alpari”.
The Russian stock market expect difficult but very interesting times, says the analyst. “The stronger will shrink quotations of leading stocks and indices now, the more attractive they will become for foreign investors. Political risks are currently minimal, and foreign money needs to appreciate this fact on the merits,” he commented.
In the near future possible growth of the Russian market and the ruble, the analyst also believes investholding “Finam” Bogdan Zvarich, however, it will be only a short-term correction, he warns.
“The fact that the wave of profit-taking on short positions may cause the restoration of the American indexes and oil prices. This will contribute to the growth of Russian stocks and the ruble strengthening. However, this tendency is likely to be short term and at the end of this week or early next decline will resume,” explains the analyst.
According to Mikhail Podolskogo of the company “Teletrade”, the medium-term picture for the Russian market in terms of dollars does not look so bad.
“There is great hope that most of the risks have already been implemented. When ready to withstand drawdowns medium can even a little to bribe the Russian market. As the stabilization of the situation on the world markets, the RTS index this year has all chances to return to the levels in 900 b.p.”, — he believes.
As the stabilization of the situation in the financial markets will not see the update historical highs the MICEX index (though what with the exchange rate question), the expert adds.