Russian stock indices slightly declined on working Saturday

TASS Russian News Agency | Feb 20, 2021 at 6:14 PM

MOSCOW, February 20. /TASS/. Moderate sales prevailed on the Russian stock market on Saturday in the absence of benchmarks in the form of trading on foreign stock exchanges.

By the evening, the ruble-denominated MOEX index fell by 0.33%, to 3,446.32 points, the dollar-denominated RTS index plunged by 0.44%, to 1,465.82 points.

As of 7:07 pm Moscow time, the dollar-to-ruble rate edged down by 0.05%, to 74.07 rubles, the euro-to-ruble rate edged up by 0.03%, to 89.85 rubles.

"On the eve of the Western stock exchanges ended the day mostly in the black, however, oil prices were losing ground on Friday as there were reports of a normalization of the situation in Texas and a number of other states, which had been in captivity of abnormal frosts several days before. The geopolitical tension also affects the dynamics of domestic assets," Alexander Bakhtin, investment strategist at BCS World of Investments, told TASS.

TCS shares (+4.2%) were among the favorites in terms of demand on Saturday.

"Attention to these shares both positive and negative is not waning. In particular, today, the share price has updated its record high at 4,222 rubles and retains the goal of growing to 4,500 rubles. Such a stable rally is based on the bank's business model and the trust of entrepreneurs in it," Anna Bodrova, senior analyst at Alpari said.

On Saturday, shares of Norilsk Nickel declined by 3.9% following the corporate news.

"The roof of the building at the company's enrichment plant collapsed on Saturday night during repair work, at least one person died. The company plans to more than double its capex in the coming years, but in the short term the event has a negative effect for Norilsk Nickel and its reputation," Elena Kozhukhova, an analyst at Veles Capital, said.

On Saturday, shares of Rusal and Lukoil companies declined by 0.89% and 0.34% respectively.

Forecast for next week

The next week will be short for the Russian market, trading will not take place on February 23 due to the public holiday.

"We foresee weak activity in trading on Monday, which will be an official day off in Russia. At the same time, the external background on this day will be quite diverse. The previous range of topics - virus related issues, incentives in the United States, geopolitics, commodity prices will continue to influence the general mood of investors. As for important macroeconomic statistics on Monday, we would note the German IFO business climate index for February," Bakhtin said.

BCS World of Investments' forecast range for the range of the MOEX index for Monday is 3,400-3,500 points and for the dollar-to-ruble rate is 73.6-74.6 rubles.

According to Alexander Osin, analyst at Freedom Finance, there is still a chance that on Monday and by the end of next week, prices of the Russian stock segment will increase.

The expected range of the MOEX index by the closure of the next trading session is 3,400- 3,485 points. The dollar and euro rates against the ruble are expected to be in the range of 73.75-74.45 rubles and 89.15-90.3 rubles respectively.