Morning Note /
Russia

Alfa Morning Bulletin: 1 April 2022

  • Russian stocks close March with gains

  • First quarter ends on a weak note

  • Russian stocks extend gains, ruble steadies

Alfa
1 April 2022
Published byAlfa

Russian stocks close March with gains: Russian stocks maintained their upward trajectory yesterday – RTSI +7.6% @ 1,021) and IMOEX (+7.6% @ 2,703) – to close the month of March with gains. Russia’s main local stock indexes clawed back 9% for the month, although remain down 30% YTD. The ruble strengthened 1.6% vs the dollar to 83.20 and gained 1.8% vs the euro to 92.50. Crude prices retreated after the US announced plans to release 1 mbpd of crude from strategic reserves over the next six months try and alleviate price pressure and rein in inflation (Brent - 4.9% @ 104.39).

Russian stocks extend gains, ruble steadies: Russian equities remained decoupled from global trends and both the RTS and IMOEX are extending gains this morning as they close a 25% gap to the performance of advanced markets YTD. The domestic focus today will be the resumption of talks via video conference between officials from Russia and Ukraine. Foreign Minister Sergei Lavrov meets Indian Prime Minister Narendra Modi in India as Russia seeks to expand trade relations and pivot eastwards towards Asia. S&P Global reports Russian PMI Manufacturing data for March. Yesterday the US imposed new Russiarelated sanctions, targeting defense companies and individuals. OZON bank was removed from the SDN list by OFAC. The EU is expected to announce new measures against Russian banks. The ruble is steady this morning, trading near last night’s closing levels of 83/US$ and 92/EUR, which shows signs of becoming the new trading range.

KEY NEWS

President Putin signs Decree to make natural gas payments in rubles – NEUTRAL

QIWI’s BoD recommends a 10% buyback program

Segezha Group reports solid 4Q21 results, indicates positive price and demand trends in 1Q22