- Moscow Exchange Index: 3730 (-1.1%)
- RTS Index: 1580 (-1.4%)
The new trading week on the Russian market began deeply in the red. The indices are under pressure from weak sentiment on world markets and the decline in oil prices.
Since Monday morning, Brent oil prices have lost 1% to $ 72.9 per barrel. The pressure on the quotes is exerted by the news from the OPEC + fields. On Sunday, the participating countries reached a compromise – the deal was extended from April to the end of 2022. From August, OPEC + will increase production by 400 thousand bpd every month until it completely cancels the current reduction of 5.8 million bpd. Thus, in the second half of 2022, OPEC + production may return to pre-pandemic levels.
The USD / RUB pair is growing by 0.3% to 74.3, responding to the weakness of oil prices. This week, on Friday, the pivotal meeting of the Bank of Russia will be held on the key rate. Now the market has expectations for an increase in the rate, but the question is about the size of the step (from 50 bp to 100 bp). Friday’s decision by the Central Bank should become a driver for the national currency in the medium term.
Preferred shares of Surgutneftegaz lose 14.2% after passing the dividend cut. The dividend yield at Friday’s close was 14.65%. Given the magnitude of the dividend gap, it could take at least several months to close. The speed will strongly depend on the dynamics of the USD / RUB pair.
Better than the market shares of Lenzoloto are traded. Recently, there has been an increased speculative activity in the instrument. There is no objective fundamental idea in the papers. Moreover, there is a possibility that the company will be liquidated, therefore entering the paper is associated with high risks.
Reports in the US today will be published by: IBM, JB Hunt Transport Services, Nicolet Bankshares, Tractor Supply, Equity LifeStyle Properties, Zion Bancorporation
Leaders: Lenzoloto-jsc (+ 4.3%), Lenzoloto-up (+ 3.5%), Airplane (+ 2.9%), Rostelecom-jsc (+ 0.5%), Yandex (+0.4 %)
Outsiders: Surgutneftegaz-ap (-14.2%), Petropavlovsk (-2.3%), Gazprom Neft (-2.0%), En + (-2.0%)
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