Russian Stocks Post Gains for Third Consecutive Session

Strategic Insights -

The Russian stock market has been on the rise, with gains posted for the third consecutive session. The benchmark RTS stock market index grew to around 1450 points on Thursday, driven by oil stocks, including Gazprom (RTS: GAZP) and MMC Norilsk Nickel (RTS: GMKN). The market's growth is attributed to an increase in oil and metals prices, with Norilsk being the leader on Thursday, growing 3% on the MICEX and 6.9% on the RTS. Investors are cautious ahead of the Federal Reserve's decision on interest rates, but favorable foreign news and speculation are supporting the market.

Key Takeaways:

  • The Russian stock market has posted gains for the third consecutive session, with the benchmark RTS index growing 2.4% to 1447.92 and the MICEX 1.73% to 1292.2.
  • Oil stocks, including Gazprom and MMC Norilsk Nickel, led the market, with Norilsk being the leader, growing 3% on the MICEX and 6.9% on the RTS.
  • The market is anticipating a 0.25 percentage point increase in interest rates by the Federal Reserve, but favorable foreign news and speculation are supporting the market.
  • Dealers are cautious ahead of the Fed's decision, but investors are optimistic about the market's growth, citing undervalued Russian stocks.
  • The technical situation looks positive, with the RTS and MICEX indices breaking through their resistance levels and turning upward.
  • Investors are waiting for the Fed's accompanying statement, which could influence the market's direction.
  • The market's growth is attributed to a combination of favorable economic statistics from the US, including a 5.6% growth in GDP, a drop in inflation indicators, and an upward adjustment of company profits.
  • The rebounding Russian stocks this week may be a sign of the market catching up with global trends, rather than a new trend forming.

Statistics:

  • The RTS index grew 2.4% to 1447.92.
  • The MICEX grew 1.73% to 1292.2.
  • Norilsk grew 3% on the MICEX and 6.9% on the RTS.
  • Gazprom rose 3.3% to 275 rubles a share.
  • Lukoil (RTS: LKOH) grew 2.8%.
  • Rostelecom (RTS: RTKM) was up 1.2%.
  • Surgutneftegas (RTS: SNGS) grew 3.3%.
  • Tatneft (RTS: TATN) grew 2%.
  • Sberbank (RTS: SBER) fell 1.3%.
  • Unified Energy System (UES) (RTS: EESR) slipped 0.6%.
  • RTS classic market trading was $40.852 million.
  • Trading volume on the MICEX stock section exceeded 49.639 billion rubles, with 18.07 billion rubles for Gazprom and 14.75 billion rubles for Lukoil.

Sources:

  • Interfax
  • Antanta Capital
  • Olma
  • NetTrader.ru
  • Brokercreditservice
  • Alemar
  • Aton Line