Domestic exchanges were back in bullish mode Wednesday on the heels of a rise in November manufacturing figures and upbeat trends unfolding on commodity markets. As a result, the MICEX Index and the RTS Index added over 4%.
Banking stocks, which are traditionally the most sensitive to the economic environment, outperformed, with Sberbank leaping 6.2% and Bank VTB rallying 5.2%. O&G plays traded in synch with the market, as Gazprom jumped 5.1%, Lukoil climbed 3.8% and Rosneft gained a hefty 6.3%. Sustainable gains were seen in steels, Tuesday’s laggards, as NLMK surged 10.9%, MMK spiked 2.9% and Severstal ended 3.9% higher. For a second consecutive session Pharmacy Chain 36.6 topped the laggards, sliding 3.4% on reports the company is considering a major SPO.
American trading was mixed Wednesday and the market reaction to the Fed chairman’s statements about future monetary policy was neutral. The S&P 500 Index inched up a mere 0.1%, while commodity stocks outperformed. No single trend is also seen on Asian trading floors this morning, with Chinese stocks suffering the heaviest losses. Commodity markets look upbeat notwithstanding a strengthening bout of the dollar, as crude rose above USD 74/bbl and primary groups of non-ferrous metals kept climbing.
According to our estimates, Thursday morning's news flow is neutral for Russian stocks, but yesterday’s investor optimism could add to volatility. O&G plays and base metal stocks could continue to outperform on the back of rising commodity prices. Banking names will remain under pressure from financials to be released by VTB and Bank Saint Petersburg.
