Morning Note /

Alfa Morning Bulletin: 13 April 2021

  • Russian cyclical stocks rally

  • Metallurgy stocks led the charge higher

  • Russia poised to advance higher

13 April 2021
Published byAlfa

Russian cyclical stocks rally: Stock markets fought an uphill struggle on Monday as the focus switches to the Q1 earnings season, which kicks off this week, and as many parts of the world continue to struggle and grapple with Covid. Russian equities got a boost intraday from a jump in the oil price – RTSI (+1.0% @ 1,432) and IMOEX (+1.1% @ 3,522) – and there was broad-based rally led by cyclical stocks. The ruble erased intraday gain to close with weakness near the bell (-0.1% @ 77.43) decoupling slightly from the oil price (Brent +0.5% @ 63.28).

Russia poised to advance higher: We expect the Russian stock market to maintain growth today supported by the strong Chinese trade data which is boosting Asian gauges today and the higher oil price. With Us Treasury yields climbing higher (UST10 1.689%) we expect the rotation into cyclical stocks to continue, particularly for commodities exporters.

Key news

NLMK 1Q21 trading update – Incredible steel prices surge fully offsets sales structure rebalancing – Neutral-to-positive

Nornickel: Production recovery at Oktyabrsky mine ahead of schedule – Positive

X5 (O/W): Key takeaways from CEO interview – Neutral