Russian Stock Market Hits Record Highs Amid Favorable US Inflation Statistics

Strategic Insights -

The Russian stock market continued its upward trajectory on Friday, with most blue chips dipping in trading. However, the RTS and MICEX indices hit record highs during the session. Benchmark stocks fell 0.1%-2.8% on the Russian Trading System (RTS) and the Moscow Interbank Currency Exchange (MICEX). The RTS index fell 0.11% to 1862.4, while the MICEX slid 0.64% to 1619.47. Despite the fluctuations, several stocks showed significant gains, including MMC Norilsk Nickel (RTS: GMKN), Tatneft (RTS: TATN), and Gazprom Neft.

Key Takeaways:

  • The RTS and MICEX indices hit record highs during Friday trading, with the RTS index reaching 1870.82 and the MICEX reaching 1635.96.
  • Benchmark stocks fell 0.1%-2.8% on the Russian Trading System (RTS) and the Moscow Interbank Currency Exchange (MICEX).
  • Stocks like Rostelecom (RTS: RTKM), MMC Norilsk Nickel (RTS: GMKN), Tatneft (RTS: TATN), and Gazprom Neft showed significant gains, while others like Surgutneftegas (RTS: SNGS) and VSMPO-Avisma (RTS: VSMO) experienced losses.
  • US inflation statistics released on Friday were favorable for emerging markets, with the PCE consumer spending index dropping unexpectedly in November.
  • Analysts from Olma and Russian Development Bank stated that the data did not change the situation on the Russian stock market, but rather provided a positive outlook for the market's continued growth.

Statistics:

  • WTI futures for January delivery fell four cents to $62.62 per barrel on Friday, while Brent futures climbed 17 cents to $62.63.
  • The RTS Index fell 0.11% to 1862.4 and the MICEX slid 0.64% to 1619.47 during the session.
  • Trading volume on the MICEX stock section exceeded 35.959 billion rubles, with 12.97 billion rubles traded for Gazprom.
  • The Core PCE dropped unexpectedly in November to zero after growing 0.2% in the previous month.

Sources:

  • Interfax, Dec 22.
  • Vladimir Detinich, head of the analytical department at Olma.
  • Igor Duel, Russian Development Bank analyst.
  • RIA Novosti, Dec 22.
  • Reuters, Dec 22.