Stock Market Approaching Key Milestone
The Russian stock market is on the rise, approaching the milestone of 2,600 points. Investors are feeling positive due to bullish sentiment and hopes of geopolitical improvements that may lead to the Bank of Russia ending rate hikes on December 20. However, it’s essential to remain cautious as the market can be unpredictable. Experts suggest holding onto money for averaging positions in case the Moscow Stock Exchange Index dips below 2400 points.
While Positiva shares saw a 5% increase, indicating positivity in high technologies, there are concerns about the company’s debt and plans for additional stock issuances. On the flip side, BEAC started the week with a slight decline, unable to surpass the resistance level of 237-240 rubles. Analysts believe that the market may not see significant growth without the participation of Savings Bank.
The ruble-yuan pair experienced a 3.4% adjustment following ruble weakening, which is expected to stabilize soon. Recent data from the Bank of Russia shows a decline in currency sales by major exporters in November, partly due to sanctions and repaying foreign currency loans. This has led to a stronger ruble in early December.
The preferred shares of Surgutneftegaz rose by 2.4% with ruble weakening, while Polyus saw a 3.3% increase due to a rise in gold prices. Speculative profits and upcoming events may trigger correction in Polyus shares, so experts advise investors to be cautious.
These insights come from Alexey Antonov, Head of Investment Consulting at ALOR BROKER. It’s essential to note that the opinions shared in this article reflect the status of the market and should not be taken as buying or selling recommendations. Stay informed and make investment decisions carefully.
