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Alfa Morning Bulletin: 1 June 2021

  • Markets moved into a holding pattern, waiting for fresh catalysts
  • Asian stocks on the front foot this morning
  • Rally in commodity prices provide a catalyst to Russian cyclical stocks

Markets moved into a holding pattern, waiting for fresh catalysts: Markets drifted slightly lower on Monday, with the US and UK closed for holidays, and the remainder of the market busy with the end of month rebalancing. The Russian market moved into a holding pattern but also lost steam – RTSI (-0.4% @ 1,598) and IMOEX (-0.2% @ 3,722) – in part due to a lack of fresh catalysts. The RTS delivered a gain of about more than 8% for the month of May. Cyclical stocks performed well supported by resurgent commodity prices. The ruble strengthened (+0.2% @ 73.32) while oil prices slipped lower (Brent -0.5% @ 69.32).

Rally in commodity prices provide a catalyst to Russian cyclical stocks: Russian equities have opened with strength this morning and are poised to advance supported by a rally in commodity prices which are flirting with new highs. Brent has surged above $70 per barrel and gold is ticking higher, holding well above the $1,900/oz level. There is optimism ahead of European and US data later this week that is expected to show further signs of economic recovery. We expect cyclical stocks to a broad rally across the Russian equity universe today, with domestic-orientated stocks such as retailers and utilities supported by a stronger ruble.


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The contents of this document have been prepared by Joint Stock Company “Alfa-Bank” ("Alfa Bank") as Investment Research within the meaning of Article 36 of Commission Delegated Regulation (EU) 2017/5...

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