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Alfa Morning Bulletin: 27 May 2021

  • Russian stocks inched higher
  • Inflation fears continue to cap market growth
  • Russia likely to open sideways with risk to the downside

Russian stocks inched higher: Stocks inched higher yesterday after more central-bank officials joined the chorus predicting that inflationary pressures are transitory, soothing concerns that monetary tightening may start sooner than expected. Russian stocks advanced – RTSI (+0.6% @ 1,590) and IMOEX (+0.7% @ 3,711) – with the gains concentrated in banks and gold stocks. The ruble closed flat (unch. @ 73.51) and oil prices ticked higher (Brent +0.3% @ 68.87).

Russia likely to open sideways with risk to the downside: We are likely to see the Russian stocks market open in a sideways pattern today, with risk to the downside. Fears persist that central banks are closer to considering winding back their emergency stimulus. Earlier this week, US Federal Reserve Vice Chair Richard Clarida said he believed recent inflation pressures would “prove to be largely transitory,” though he did add that policymakers will be at a point to begin discussing tapering in upcoming meetings. Oil prices are in retreat this morning amid concern the market could face a flood of Iranian barrels if sanctions on the Persian Gulf producer are lifted. In commodities, gold prices have moved back below $1,900 per ounce, its appeal dimmed by a rebounding dollar and US Treasury yields.

KEY NEWS

Retail loan growth up 19.6% y/y in April, deposit side posted improvement – MIXED

VTB (E/W): 4M21 IFRS results – MODERATELY POSITIVE

Lukoil 1Q21 IFRS results: strong EBITDA, robust FCF suggests higher dividend – POSITIVE

Detsky Mir (E/W): 2020 final dividend, April-May sales – NEUTRAL-to- 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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