Russian Share Prices Fall Amid Oil Price Drop and Thailand Concerns

Strategic Insights -

Russian share prices fell on Wednesday, with the RTS Index dipping below 1840, as speculators took profits following the latest drop in oil prices. While telecom stocks, led by Rostelecom, advanced, benchmark stocks fell 0.9%-3.3%. The drop in Thailand also contributed to the decline, with concerns about inflation in the United States further weakening the market. However, healthy ruble liquidity and the anticipation of a New Year rally provided some relief.

Key Takeaways:

  • The RTS Index dropped 0.84% to 1837.87, while the MICEX Stock Index shed 1.67% to close at 1604.19.
  • Rostelecom was the only telecom stock to advance, rising 0.4% to 186.6 rubles on the MICEX.
  • Sberbank, which had gained for most of the day, closed at 80,100 rubles on the MICEX, 1.4% down from its new all-time high.
  • The drop in Thailand and concerns about inflation in the United States were major factors contributing to the decline in Russian stocks.
  • Healthy ruble liquidity and the anticipation of a New Year rally provided some relief to the market.
  • Second-tier banking and telecom stocks were in demand, with gains for Industry & Construction Bank (2.6%), Rosbank (7.7%), CenterTelecom (2.1%), and Vozrozhdenie (5.8% pref).
  • Titanium producer VSMPO-Avisma also rallied, by 5.8%.
  • Trading volume on the MICEX was 53.732 billion rubles, with Gazprom taking 13.425 billion rubles, and trading on the RTS classical market was $50.909 million, with Lukoil taking $23.908 million.
  • Antanta Capital's Alexander Pankov mentioned that the market would wait for Wall Street's opening, while Nord Capital's Alexander Baranov stated that the situation in Thailand prompted sales on emerging markets.
  • Aton-Line's Andrei Vernikov said the market could afford to relax and was watching what happens next, with the possibility of a rally in the last few trading days of the year.

Statistics:

  • The RTS Index dropped 0.84% to 1837.87.
  • The MICEX Stock Index shed 1.67% to close at 1604.19.
  • Rostelecom rose 0.4% to 186.6 rubles on the MICEX.
  • Sberbank closed at 80,100 rubles on the MICEX, 1.4% down from its new all-time high.
  • The drop in Thailand and concerns about inflation in the United States were major factors contributing to the decline in Russian stocks.
  • Healthy ruble liquidity increased by 14.7 billion rubles to 573.2 billion rubles.
  • Trading volume on the MICEX was 53.732 billion rubles.
  • Trading on the RTS classical market was $50.909 million.

Sources:

  • Interfax, Dec 19, Russian share prices fall amid oil price drop and Thailand concerns.
  • Interfax, Alexander Pankov's quote, Dec 19.
  • Interfax, Alexander Baranov's quote, Dec 19.
  • Interfax, Andrei Vernikov's quote, Dec 19.