MOSCOW, April 7. /TASS/. The Russian stock indices, that started trading with a decline on Wednesday, grew slightly by the end of the session.
The ruble-denominated MOEX index rose by 0.18% to 3,500.34 points, the dollar-denominated RTS index went up by 0.19% to 1,429.51 points.
The oil price was growing in the morning and in the afternoon but dropped after the publication of data from the US Department of Energy on energy reserves in the country. Brent crude price fell 1.04% to $62 per barrel.
The Russian currency strengthened after weakening the day before. The dollar-to-ruble rate fell by 0.19% to 77.08 rubles, the euro-to-ruble dropped by 0.1%, to 91.63 rubles.
"The situation on foreign markets was contradictory. The decline in the yield of ten-year US government bonds, which went down to 1.65%, backed the risky assets. The IMF also revised its forecast for world GDP growth for the current year from 5.2% to 6%," investment strategist BCS World of Investments Alexander Bakhtin says.
At the same time, virus related issues remain a general negative, in particular, anti-records for the incidence of COVID-19 in India and Turkey. With regard to ruble assets, the situation is aggravated by geopolitical factors - sanctions expectations, as well as the intensification of tensions in eastern Ukraine, the expert adds.
On Wednesday, the shares of companies from oil and gas, electric power sectors, petrochemical industry were the leaders. In particular, shares of RusHydro grew by 3.4%, shars of Norilsk Nickel went up by 1.69%.
"Shares of Norilsk Nickel are growing following reports that the work on pumping water from the mines Oktyabrsky and Taimyrsky is going in compliance with the schedule. The expected reduction in extraction of metals in 2021 is already included in the price by the market that is why reports that the work is going in accordance with the previously announced schedule is positive for the company's shares," Ivan Malina, investment strategist at VTB My Investments, explains.
On Wednesday, shares of TCS Group fell in price by 3.47% following the announcement of the forecast of net profit at 75 bln rubles in 2023. "The consensus forecast has already assumed a similar dynamics of the net financial result, but its confirmation by the group itself will help to reduce the discounts in market estimates of the company's profit in the coming years," Freedom Finance analyst Alexander Osin says.
Market on Thursday
On Thursday, caution may prevail in investor sentiments, Bakhtin believes.
"The head of the Fed, Jerome Powell, will take part in the IMF panel on the global economy tomorrow. The minutes of the March meeting of the ECB will also be published," he said. As for macroeconomic indicators, the market will pay attention to the performance of Germany - the February volume of industrial orders and the March index of business activity in the construction sector from IHS Markit.
BCS World of Investments' forecast for the MOEX index is 3,485-3,550 points, the forecast for the dollar-to-ruble exchange rate is 76.5-77.7 rubles.
Freedom Finance's target range for the MOEX index is 3,480-3,540 points, the expected exchange rates of the dollar and euro are 76.4-77.75 rubles and 90.2-93.25 rubles respectively.