Russia Stock Market And the Ruble…
According to Russia media the domestic market reacted very vigorously to the events in the Kerch Strait, since this circumstance returns the risks of toughening external restrictions. However, the most strong pressure was experienced by the shares of Sberbank and Gazprom, which are directly related to property issues with Ukraine.
Oil has begun a new week with attempts to grow, but the uncertain assault on the $ 60 a barrel mark Brent speaks of weak chances of returning quotes to steady growth. Accordingly, the oil paper did not feel so confident.
By 15:15 (Moscow time), the MosBirzh index decreased by 0.85% to 2322.95 p., And the RTS fell by 2.0% to 1091.30 p.
Gazprom Neft and Tatneft lost about 2%. Rosneft shares traded in positive territory, for which high dividend expectations remain. Traditionally, in times of geopolitical risks, stocks of producers of precious metals are in demand, for which Polymetal and Polyus are responsible on the Russian market.
The ruble, as well as the stock market, considered the reason sufficient to weaken in spite of the dynamics of the colleagues in the commodity workshop. By the middle of the Moscow auction Brent cost about 3995 rubles a barrel. The one-day rate MosPrime rose to 7.59%, weekly to 7.69%, and monthly decreased to 7.94%. The combination of the growth of external risks with weak oil becomes the reason for the weakness of the ruble.
A year ago, when the situation was fairly stable, the dollar was worth about 58.15 rubles, and the Brent barrel was about $ 63.22. The tax period provides little support for the ruble, although the stressful situation associated with the incident in the Kerch Strait makes it invisible. In the next 1-2 days, an external reaction will clear up, which can return stability to the ruble. By 15:15 (Moscow time) USD / RUB – 66.977 (+ 1.19%), EUR / RUB – 76.132 (+ 1.44%).