Strategy Note /
Russia

Alfa Weekly Radar: Russian markets reopen with temporary limitations

  • Russian exporters likely to be in demand as stock trading resumes

  • Global stocks eke out gains

  • 1Q22 one to forget for equity traders

John Walsh
John Walsh

Equity Strategist

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Contributors
Denis Dorofeev
Boris Krasnozhenov
Alfa
29 March 2022
Published byAlfa

Russian exporters likely to be in demand as stock trading resumes: Trading in local Russian stocks has fully resumed this week, albeit with restrictions on short selling and the freeze on non-resident trading remains in place. The outlook at the start of the week is gloomy as investors weigh risks to the economic recovery from inflation and tightening monetary policy. Bonds have reversed an earlier slide and the dollar is advancing, while oil is extending losses on China’s demand concerns. Eurozone inflation is expected to hit a record high, with releases due in the second half of this week. China’s PMI on Thursday is expected to show a weak economy outlook. US inflation data is due on Thursday and the March jobless claims are expected on Friday. On the Russian front, talks with Ukraine are set to resume in Turkey this week. It is unlikely that there are going to be any major breakthroughs. We expect Russian exporters, particularly fertilizers, energy names and base and precious metals producers to remain in demand. The ruble has opened the week with strength and is likely to make further gains.