The Russian stock market moderately declines before OPEC meeting

Российский рынок акций умеренно снижается перед встречей ОПЕК

The Russian stock market on Tuesday afternoon declines major indices in the absence of drivers of growth and in anticipation of the results of the OPEC meeting.

The MICEX index by 13.15 Moscow time have decreased on 0,14%, to 2091,71 points, RTS index — on 0,43%, to 1013,79 points, follows from the data of the Moscow exchange.

The dollar calculations “tomorrow” grew up with it at 14 cents, to 64,99 of the ruble, the Euro by 16 cents, to 68,91 of the ruble.

The January futures for Brent fell by 1.54% to 48.45 dollars per barrel.

In anticipation of the OPEC decision

“Until the OPEC meeting on approval of the agreement by the freezing of oil production remain exactly the day and the market is pretty nervous,” — said Alexander Razuvaev of “Alpari”.

Over the oil market increases uncertainty, the news has focused exclusively on the upcoming OPEC meeting, also says Valery Yevdokimov from Nordea Bank. The result of the recent technical consultations there is almost no information, he adds.

The decline in Brent crude prices and prospects of production cuts weigh on investor sentiment, said mark Bradford, an analyst of FG BKS. “After the rally caused by the unexpected decision of OPEC to reduce output at a meeting in Algeria (September), the inability to enter into a formal agreement creates a risk of correction,” he said.

Corporate history

Shares “RusHydro” grow by more than 6% in the absence of news on Tuesday, updating the highest since may 2012.

To date the company’s securities rise by 6.25% to 0,9353 ruble (already jumped by 7.5% to 0,9464 rubles).

Analysts attribute the rise in stock with a positive reaction of investors to the news Thursday that the company’s Board of Directors approved an additional share issue in favor of VTB for 40 billion shares with a par value of 1 rouble each to the Bank and the sale of Treasury shares for 15 billion rubles. Thus in the framework of the additional issue of RusHydro will be placed 40,429 billion shares with par value of 1 rouble each.

“Growth “RusGidro” has begun on Friday. Update of the year’s high and out of autumn and consolidation under the level 0.84 ruble goals in the area of 1 ruble. In fact, they are. This is from a technical point of view,” — said the chief analyst of “VTB 24” Stanislav Kleshchev.

Placement of an additional issue at a price higher than the market (nominal value of shares — 1 ruble) provokes purchases, he explains. In addition, the “RusHydro” – one of the major energy companies who are significantly behind in the dynamics from the industry this year, and now it’s also catch-up growth, points out the analyst.

Paper “Mechel” falling (preferred shares — 2.42%, ordinary shares – on 2,73%) amid reports on the reduction by the group in January-September 2016 coal production by 2% compared to the same period last year — up to 17,087 million tons, steel production — by 3%, to 3,131 million tons, iron production by 2%, to 3,012 million tons.

Gainers and reduce

Among leaders of growth – the share of OGK-2 (3,84%), ordinary shares of “Russian grids” (2,53%), the shares of “MegaFon” (1,83%), “Aeroflot” (1,7%), “Gazprom oil” (1,32%) and the shares of VSMPO-AVISMA (1,46%).

Also among leaders of decrease – actions “inter RAO UES” (-2,51%), M. Video (-2,47%), MMK (-2,42%), “Enel Russia” (-2,13%), Acron (-1,77%), as well as shares in NOVATEK (-1,31%) and Raspadskaya (-1,26%).

Forecasts and recommendations

Evdokimov expects market consolidation, the MICEX index during the day.

The MICEX index protorguetsya in the hallway 2085-2115 points, predicts Razuvaev. “The special occasions to buy there, and without the driver market is difficult to hold on to record peaks. However, there is no reason for the sale, so the exchange activity is reduced,” he comments.