U.S. sanctions provoked the “black Monday” on Russian market

MOSCOW, April 9. /TASS/. New US sanctions sent the ruble and Russian stocks to the lows of yesteryear. Despite the rise in oil prices, the index of the Moscow stock exchange suffered the most serious losses since March 2014, and the ruble against the dollar fell to a very modest level over the last six months.

At the end of trading the index Mosberg fell by 8.34% to 2090,88 points, the RTS index – by 11.44% to 1094,98 item limit of the auction.

The ruble to the dollar on Mosberg at 18:50 Moscow time has decreased on 3,4%, to 60.15 of the ruble – the lowest level since November of 2017, to Euro – on 3,8%, to 74,08 of the ruble – the lowest level since August 2016. The cost of the futures on Brent crude for delivery in June 2018 on the ICE exchange in London grew by 2.2% – to $68.2 per barrel.

The U.S. entered April 6 sanctions against seven Russian businessmen and companies controlled by them. In the “black list” includes Oleg Deripaska, Vladimir Bogdanov, Suleiman Kerimov, Igor Rotenberg, Kirill Shamalov, Andrey Skoch, Viktor Vekselberg. Restrictions apply to controlled by Deripaska’s industrial group Basic element, and one of her machine-building holding “Russian machines”, company B-Finance group En+ and “EvroSibEnergo”, “RUSAL”, “GAZ Group” and Agroholding “Kuban”. Also under the sanctions were the company “Gazprom drilling” and a group NPV Engineering Igor Rotenberg, the company “Ladoga management” Kirill Shamalov and Renova group Viktor Vekselberg.

The analysts

The leaders of the fall on Monday, shares were under Deripaska’s control of RUSAL, which this morning announced the possible technical default of U.S. sanctions (-20,35%). In “RUSAL” following the paper “Poles” (-18,31%), ordinary shares of “Mechel” (-19,26%). ordinary and preferred shares of Sberbank (-17,04% -13,44%, respectively), ordinary shares Polymetal (-12,66%), the shares of “MegaFon” (-9,77%), TMK (-9,15%), “Aeroflot” (-8,46%) and VTB (-9,03%).

“Sold out all most liquid chips, which, of course, associated with fears of new restrictions on Russian companies,” commented market analyst “Discovery Broker” Andrei Kochetkov.

On Tuesday, the situation can “a few to calm down,” the RTS index may be at the level of 1000-1100 points, while the index of the Moscow exchange – 2000-2100 points, predicts the Deputy Director of analytical Department of “Alpari” Natalia Milchakova.

“The negative trend of the bond market and the news about the sanctions had a significant pressure on the Russian ruble. We believe that the dollar/ruble tomorrow will go to the range 59-61 RUB, EUR/RUB – the new range of 73.5-75 rubles”, – predicts it.

“The undervaluation of the ruble and oil very strong… we Believe that the ruble will eventually return loss, reflecting its undervaluation of oil,” write a review of the analysts of “VTB Forex”.

It’s possible that the bulls will try to take advantage of technical factors and to expand the market over the mark 2000 index Mosberg. “If the index breaks through Mosuri this double support, the next target reduction will be the level of 1,800 points,” – says senior analyst of “freedom Finance” Bogdan Zvarich.