stock market

The Russian stock market continues to rally for the third day in a row in the new year. Leading stock indices once again updated historical records, rising by 11-18% since the beginning of the year. Trading volumes reached multi-year highs. According to market participants, demand for shares comes from foreigners who have allocated significant funds for investment in Russia in the new year.

Yesterday, stock prices continued to rise on the Russian stock market. As a result, the indices reached new historical highs for the third day in a row this year. At the end of the day, leading Russian indices grew by 3-5.6%. Since the beginning of the year, the increase has been 11-18%. At the same time, long-term records and trading volumes are being broken. In the sector of the classic RTS market, the volume exceeded $108 million - a record since April 1998. On the St. Petersburg Stock Exchange, the volume of trading in Gazprom shares reached a historical maximum of $912 million.

The growth was supported by all blue chips, with the exception of MMC Norilsk Nickel (-1.3%), which continues to fall in price after the spin-off of gold mining assets. The growth leaders yesterday were the securities of Sberbank, Gazprom and LUKOIL. Analysts find explanations for the growth of each of these securities. For example, LUKOIL will present its GAAP report tomorrow, which is expected to please investors. Gazprom is reaping the benefits of share market liberalization. And Sberbank is one of the few defensive stocks, which is relevant given the current growth. But all this does not explain the observed growth rates and rise in quotations of other securities.

At the same time, experts advise looking for reasons for the growth of the market as a whole. And there are only two of them - rising oil prices and high demand from non-residents. The cost of oil yesterday increased by 1.3%, and since the beginning of the year it has already increased by 5.5%, which naturally increases the attractiveness of oil producing companies. But the main reason, according to analysts, is the influx of Western money. “Now the money that was issued for Russia is being placed, and the shares are being sold to foreigners by Russian investors who bought them earlier,” said Andrey Kukk, senior trader at Uralsib FC. Market participants explain that the funds were allocated money based on positive events of the past year - increased credit ratings, liberalization of the Gazprom stock market and others. Moreover, the demand of non-residents covers the entire range of securities. “Non-residents are buying; for example, in the second echelon they take everything from offers, we are no longer talking about spot purchases,” said Aton Investment Company analyst Andrey Vernikov. Thus, corrections in the market are expected no earlier than the pent-up demand of foreign investors ends.

ALEXEY Ъ-BAIBAKOV

Indices rose on foreign money