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Alfa Morning Bulletin: 21 May 2021

  • Mixed market sentiment Thursday as investors weighed reduced stimulus prospects with economic growth potential
  • Russia moves into a sideways pattern
  • QIWI reports unimpressive 1Q21 numbers, reiterates cautious guidance - NEUTRAL-to-NEGATIVE

Mixed market sentiment Thursday as investors weighed reduced stimulus prospects with economic growth potential: There was a cautious mood on the global market Thursday: one of optimism and pessimism on various markets. There was a general risk-off mood in Russian equities yesterday but there was a bounce in late trading – RTSI (+0.4% @ 1,558) and IMOEX (unch. @ 3,636) – with strong gains in a select number of stocks. The ruble remained firm (unch. @ 73.51). Oil prices fluctuated before eventually closing the session lower (Brent -2.3% @ 65.11) with traders paying close attention to developments on the Iran nuclear negotiations.

Russia moves into a sideways pattern: The Russian market has opened in a sideways pattern as the reflation trade loses steam. Investors are starting to price in tapering by the Fed later this year and that has eased the upwards pressure on US Treasury yields. Adding to the improvement in general sentiment is the pullback in commodity prices. Today we expect mixed dynamics in Russian equities but generally a sideward pattern as the week draws to a close.

John Walsh: jwalsh@alfabank.ru (Equity Strategist)

KEY NEWS

QIWI reports unimpressive 1Q21 numbers, reiterates cautious guidance - NEUTRAL-to-NEGATIVE


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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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