Tellimer

Alfa Morning Bulletin: 24 May 2021

  • Russia ends a solid weekly performance on a high note
  • Global markets eke out advance with pivot towards cyclicals
  • Russian stocks open sideways, but should eke out some gains

Russia ends a solid weekly performance on a high note: Russian stocks advanced on Friday to top off a solid weekly performance – RTSI (+0.7% @ 1,569) and IMOEX (+0.7% @ 3,660). There was growth in oil & gas, banks and tech names with metals & miners under some pressure. The ruble closed flat (unch @ 73.58) but added 0.5% for the week. Oil prices rose for the first time in four trading sessions on Friday (Brent +2.0% @ 66.44), the only day of positive dynamics last week due to negotiations on a new Iran nuclear deal.

Russian stocks open sideways, but should eke out some gains: The Russian market has opened sideways and a mixed day can be expected, although the rebound in crude prices should provide support to oil & gas stocks, the ruble and banks. Sentiment is being tested by concerns over rising inflation in the US and worries that that may prompt the Federal Reserve to begin tapering sooner than expected, making the US inflation report later this week a key watch factor. The reflation trade is expected to stay firm and should support Russian cyclical stocks. It looks set to be a quieter trading day in Europe with markets closed in Germany, Switzerland, Denmark, Norway, Belgium and Austria for the Whit Monday public holiday.

Key news

The CBR to raise risk coefficient on mortgage loans starting 1 August – Mixed

MMK’s potential SPO is a win-win – Neutral-to-positive


Most Viewed See latest
Disclosures

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...

Full Tellimer disclaimers