Russian stock indices continue to decline as ruble strengthens

TASS Russian News Agency | May 12, 2022 at 7:20 PM

MOSCOW, May 12. /TASS/. The Russian stock indices intensified the decline on the Moscow Exchange amid the ongoing geopolitical tensions and the strengthening of the ruble.

By the end of trading on Thursday, the MOEX index fell by 3.74%, to 2,297.89 points, the RTS index rose by 1.43%, to 1,140.05 points due to the strengthening of the domestic currency.

The dollar-to-ruble rate fell by 3.90% to 63.3 rubles, the euro rate decreased by 5.24% to 65.26 rubles.

After another decline to $101 per barrel oil prices began to recover reaching $108.

This happened despite a strong dollar, a new wave of coronavirus cases in China, as well as today's reduction of OPEC's forecast for the growth of world oil demand in 2022 by 0.3 million barrels per day - up to 3.4 million barrels.

"The threat of interruptions in Russian oil supplies due to geopolitical collisions outweighs the downside factors," said Alexander Bakhtin, an investment strategist at BCS World Investments.

On the stock market, shares of Acron (+4.9%), VSMPO-Avisma (+2.5%) and alcohol producer Beluga (+2.4%) showed the most noticeable growth on Thursday.

The leaders of decline are the shares of the following companies: Petropavlovsk Group (-12.6%), EMC holding (-12.3%) and VK (-7.6%).

According to BCS World of Investments, on May 13, the MOEX index may be within the range of 2,285-2,400 points, the forecast range of the dollar-to-ruble rate is 63-70 rubles.

Freedom Finance expects the MOEX index to be in the range of 2,250-2,400 points, the dollar and euro currency pairs against the ruble - in the range of 63.5-68 and 66-70 rubles respectively.