As of Monday’s close, August 30, the Russian stock market could account of very modest growth: MICEX Index added 0.3% and reached 1370 points. The following papers performed much better than the market: Rostelecom (+9.2%), Norilsky Nickel (+2.7%) and Tatneft (+1.3%). Papers of Lukoil lost 0.8 % after release of information that earlier planned buyout of 11% of its stocks from Conoco can fall through. The oil price dropped from $75.2 to $74.7 a barrel. Worries about worsening of the economic situation prevailed during trading in the American market, which ended with a noticeable downslide of key indices.

Positive information on the consumer trust index published in the USA, which rendered support to global markets on Tuesday night, also helped avoid a substantial fall of the Russian stock market. МICEX Index closed the day 0.1% lower than closing of the day before.  Rostelecom papers demonstrated strong performance by going up 3.1%. Equities of GMK underperformed the market by diving 1.6%. Papers of Lukoil shed 1.4% after publication of the company’s results for the second quarter. 

Quite strong Purchasing Managers Index (PMI) data released in the USA helped the Russian stock market demonstrate stable growth on Wednesday. МICEX Index added 1.9% as of the close of the day and approached the 1400-point mark. Papers of AvtoVAZ, soaring 17.7%, became an absolute leader of growth. Metal papers also looked very strong:  Severstal (+3.7%) and Mechel (+4.6%).

The bullish tendency prevailed in the Russian stock market on Thursday, which was supported by quite decent macro economic statistics from the United States. МICEX Index went up 0.5% and once again this year crossed the 1400-point milestone. Papers of AvtoVAZ again ranked as the top advancer after edging up 10.8%. Rostelecom shares demonstrated quite nice performance as well by adding 2.0%. Metal papers underperformed the market. Quotes on Gazprom stocks moved in line with the market. The company released its statistics for the first quarter, which can be rated as extremely good, the day before.

 The Russian stock market demonstrated positive dynamics during the last trading day of the reporting period by responding enthusiastically, along with the majority of global trading floors, to strong labor market data from the USA. As a result of the daily trading, MICEX Index went up 0.6% and closed at the highest mark over the last four weeks. Stocks of AvtoVAZ jumped 22.9%, beating growth records. Quite strong performance was demonstrated by the majority of papers of metallurgists: MMK (+3.6%), NLMK (+2.2%), and Severstal (+2.3%). Preferred stocks of Transneft (-1.2%) underperformed the market. A flow of positive news from the USA did not stop there. After trading in Russia was over, speech of U.S. President Barack Obama with promises to offer stronger fiscal measures to combat unemployment was met with enthusiasm.

A new week on global markets is starting in a quite positive way. The majority of the stock indices in the Asia and Pacific region are trading in the green zone thanks to the employment statistics released in the USA on Friday that exceeded expectations. Only few macro economic reports are expected to be released within the next days. American crude oil is traded at $74.5 a barrel. With these developments as a background, the Russian stock market has a rather strong chance to maintain its positive dynamics started last week.

Alexey Popov
Head of Securities Division
for Customer Operations