Commodity prices are helping the recovery of the Russian stock market today

  • Moscow Exchange Index: 3795.85 (+ 0.13%)
  • RTS Index: 1645.31 (+ 0.32%)

The Russian market is recovering at the opening of trading on Wednesday after a decline in the first days of this week. The Moscow Exchange index yesterday updated its three-week lows, despite the fact that a significant deterioration in the external background was not observed in terms of the dynamics of prices for raw materials, the situation on the western grounds. The internal dynamics of the number of people infected with COVID-19 remains alarming.

Oil prices rise 0.2% in the morning to $ 74.4 per Brent. They are still not far from the $ 76 they reached earlier. The OPEC + technical committee met yesterday. The media note that at the expert consultation, no single decision was made on which policy to recommend to the ministerial meeting for implementation in August. The meeting of the monitoring committee planned for today has been postponed until tomorrow, when the ministers will also meet directly.

Prices for aluminum and nickel are growing today and are at their highs in recent weeks. There has been no major drop in global steel and iron ore prices in recent weeks, despite threats and investigations by the Chinese authorities. Coal and gas prices in Europe are at their highest in the last decade.

In the first minutes, we see a rebound in shares of steelmakers: Severstal (+ 1%), NLMK (+ 0.9%), MMK (+ 0.8%). At the same time, Rusal (-1.1%) continues to dive for the fifth day in a row. It should be reminded that last week the Russian government discussed the introduction of export duties on ferrous and non-ferrous metals, which negatively affected the capitalization of Russian metallurgists, in particular Rusal.

Heavyweight shares of Sberbank and LUKOIL fall in price by 0.1%, Gazprom rises in price by 0.15%.

Shares of gold miners are falling in price following gold prices, which yesterday renewed their lows since April: Petropavlovsk (-1%), Polymetal (-0.9%).

The rate of the USD / RUB pair is trading at 72.72 (-0.05%). The RGBI government bond index is growing by 0.14%.

Many important events are expected today, including a direct line from the presidents, speeches by the head of the Central Bank at the plenary session of the International Financial Congress, dividend cutoffs for ALROSA, OGK-2.

Leaders: Mechel-ao (+ 1.5%), Mechel-up (+ 1.4%), Severstal (+ 1%), NLMK (+ 0.9%)

Outsiders: FixPrice (-1.4%), Rusal (-1.1%), Petropavlovsk (-1%), Polymetal (-0.9%)

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