Russian stock indices MOEX, RTS down 0.38, 0.66% on Tuesday

TASS Russian News Agency | Oct 12, 2021 at 7:43 PM

MOSCOW, October 12. /TASS/. Russian market indices ended the trading session on Tuesday with a downward trend. The MOEX index decreased by 0.38%, to 4,263.80 points, the dollar-denominated RTS index fell by 0.66%, to 1,869.94 points.

As of 7:53 pm Moscow time, the dollar-to-ruble rate decreased by 0.01%, to 71.85 rubles, the euro rate went down by 0.17%, to 82.85 rubles.

The negative dynamics was in particular caused by a local decline in oil prices. The cost of a futures contract for Brent crude oil fell 0.36% to $83.28 per barrel.

According to investment strategist at BCS World investments Alexander Bakhtin, the situation with the Chinese developer Evergrande, which missed the next payment on the debt, also added to negative sentiments on the global market.

"The Chinese authorities also confirmed the course of tightening control in the IT sector. In addition, the pressure from the coronavirus pandemic remains serious. The October German Consumer Climate Index (Gfk) came out worse than expected," the expert added.

Russian companies' shares

On Tuesday, shares of gold mining companies were leaders of growth in the Russian stock market.

"The movement of investors' funds from the oil and gas segment to the metal assets looks like a traditional defensive reaction," said Alexander Osin, an analyst at Freedom Finance.

In particular, the shares of Polymetal and Polyus grew by more than 3%. Shares of Petropavlovsk showed the largest growth (+ 6%).

"The market reacted positively to the interview of the CEO of the company, where plans were confirmed to announce a dividend policy within the framework of Investor Day at the end of October, and it was also announced that gold production in 2021 will most likely be near the upper border of the forecast range," Ivan Malina, investment strategist at VTB my investments explained. The announcement of the dividend policy could make the shares of Petropavlovsk more attractive and predictable for investors, and the implementation of production volumes after the previous decline will also be positively received by the markets, he added.

Forecast for Wednesday

According to the expectations of BCS World of Investments, the MOEX index on October 13 can be in the range of 4,200-4,300 points, the forecast range of the dollar to ruble rate is 71.5-72.5 rubles.

Freedom Finance's target ranges for the MOEX index and the dollar and euro rates against the ruble are 4,210-4,315 points and 71.50-72.20 rubles and 82.60-83.40 rubles respectively.