Russian Stock Market Sees Gains Amid Global Market Volatility

Strategic Insights -

The Russian stock market showed resilience on Thursday, overcoming a downturn in global stock exchanges, with the MICEX Index rising 1.2% and the RTS Index increasing by 1%. The gains were driven by strong corporate earnings, particularly in the steel sector, where MMK, NLMK, and Severstal saw significant increases of 7.7%, 5%, and 2.7%, respectively. Banks and oil and gas (O&G) plays also performed well, with Gazprom, Lukoil, Rosneft, Sberbank, and Bank VTB posting gains. However, telecoms underperformed, with MTS and Rostelecom losing 0.5% and 2.1%, respectively.

Key Takeaways:

  • The Russian stock market posted gains on Thursday, defying global market volatility, with the MICEX Index advancing 1.2% and the RTS Index rising 1%.
  • Steel sector stocks, led by MMK, NLMK, and Severstal, saw significant gains, with MMK surging 7.7% and Severstal adding 2.7%.
  • Banking and O&G plays, including Gazprom, Lukoil, Rosneft, Sberbank, and Bank VTB, also performed well, with Gazprom rising 0.6% and Bank VTB landing 1.4% in the black.
  • Telecoms underperformed, with MTS losing 0.5% and Rostelecom giving up 2.1%.
  • Financial and metals stocks are expected to decline on Friday, according to Finam Investment Holding's estimates.
  • US jobless numbers are due out during the second half of the session, with investors expecting unemployment to climb to 9.8%, the highest since 1983.
  • Grigory Yudashkin, Deputy Head of the Private Investments Department at Finam Investment Holding, expects a negative news flow for the Russian stock market on Friday, with financial and metals stocks likely to decline.

Statistics:

  • MICEX Index rose 1.2% on Thursday
  • RTS Index increased by 1%
  • MMK surged 7.7%
  • NLMK rose 5%
  • Severstal added 2.7%
  • Gazprom rose 0.6%
  • Lukoil jumped 2.2%
  • Rosneft inched up 0.1%
  • Sberbank was up 0.2%
  • Bank VTB landed 1.4% in the black
  • MTS lost 0.5%
  • Rostelecom gave up 2.1%

Sources:

  • http://russianreports.aiidatapro.com/FINAM_EN/2009-10-02_Daily(FINAM)eng.pdf
  • Grigory Yudashkin, Deputy Head Private Investments Department, Finam Investment Holding
  • Tel: +7 (495) 604-8168
  • Fax: +7 (495) 604-8107
  • E-mail: yudashkin@finam.ru