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Alfa Morning Bulletin: 20 April 2021

  • Russian stocks on the back foot as geopolitical risk rumble
  • Tech stocks pull global markets lower
  • Russian equities likely to remain subdued today but higher oil may provide support

Russian stocks on the back foot as geopolitical risk rumble: Global markets retreated yesterday as investors parsed through corporate earnings. Russian equities were on the back foot as geopolitical risks returned to the fore – RTSI (-1.4% @ 1,476) and IMOEX (-0.9% @ 3,574). Within the Russian equity universe, most buyers were concentrated in metals & miners. The ruble ticked lower (-0.7% @ 76.35) due to the aforementioned geopolitical risks. Crude prices were well supported (Brent +0.4% @ 67.86).

Russian equities likely to remain subdued today but higher oil may provide support: We expect the Russian stock market to remain subdued today due to a combination of geopolitical tensions and a pessimistic global backdrop this morning. We are likely to see investors remain defensive and opt for stocks such as gold miners again and utilities. That said, US equity futures are pointing to a rebound today and crude prices are climbing higher, which may provide support to oil & gas names. The higher oil price and weaker US dollar should provide respite to the ruble.

KEY NEWS

VTB (E/W): 1Q21 IFRS results – MODERATELY POSITIVE

Nornickel 1Q21 production results: nickel and copper output down due to mine flooding and accident at Norilsk Concentrator; production guidance higher on expedited recoveries – 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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