December 30 (Finam) -- Domestic equity benchmarks kicked off predictably higher Monday on a favorable external news flow, although continuing ruble devaluation dampened investor sentiment. As a result, key stock indices ended the session mixed, with the RTS Index inching down 0.25% and the MICEX Index edging up 0.86%.
O&G stories outperformed the market on the back of an upsurge in international energy markets, with Gazprom advancing 0.8%, Lukoil gaining 2.8%, Rosneft leaping 1.8% and Gazprom Neft spiked 6.9%. Stocks of Russian leading banks saw marginal fluctuations Monday, as Sberbank shed 0.5% and VTB was up 0.6%. Steel makers finished were a mixed bag, with Severstal jumping 1.7%, MMK losing 0.2% and NLMK sinking 6.2%. After the market's emotional reaction to reports about the possible establishment of a state-run mineral fertilizer producer, UralKali (+6.3%) won back some turf lost at the end of last week.
US benchmarks eased an average 0.5% Monday. Financials and retailers were the standout decliners, while power utilities outperformed. Asian trading floors are largely bullish fed by upside on commodity markets. Crude futures topped USD 40 a barrel as military activity escalated in the Middle East.
According to our estimates, Tuesday's external news flow is neutral for the Russian equity market and we expect trading to be uneventful today. Oil and gas stocks could slightly outperform the market on a rebound in oil contracts. We also believe steel issuers and banks will remain under pressure from a complex sector environment. |
