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Alfa Morning Bulletin: 18 May 2021

  • Inflation and rise in Covid cases dampened market sentiment
  • Russia set for growth as Brent hits a two-year high above $70
  • Mixed trends AGRO and AFLT outperformers

Inflation and rise in Covid cases dampened market sentiment: Inflation fears again weighed down on the stock markets yesterday and sovereign bond yields climbed. A rise in Covid cases in many parts of the world also triggered a cautious mood. Weaker commodity prices created a down-draught for Russian equities and capped gains – RTSI (+0.2% @ 1,542) and IMOEX (+0.1% @ 3,639). The ruble pared losses to close stronger for a third session (+0.1% @ 73.75). Oil prices were in a sideways pattern but closed with strength (Brent +1.1% @ 69.49).

Russia set for growth as Brent hits a two-year high above $70: We expect Russian equities and the ruble to surge higher today supported by an improvement in global sentiment, the easing of geopolitical risk a strong ruble and a higher oil price. Brent has moved above $70 per barrel to trade at a two-year high. We anticipate a broad rally in Russian equities across all sectors.

KEY NEWS

Rosstat has reported GDP contraction of 1% y/y in 1Q21 – NEUTRAL

PhosAgro 1Q21 IFRS preview: strong quarter anticipated with record EBITDA expected in 2Q21e

RusAgro reports strong 1Q21 IFRS numbers, sugar market imbalance is unlikely to ease anytime soon providing for a continued strong price environment – POSITIVE


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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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