Market Outlook


The Russian equity market ended last week in the black, mainly supported by positive investor sentiment in reaction to the strong second quarter 2018 financial results from many Russian companies. Higher oil prices supported the positive mood, as the price for Brent crude rose by 1.5% over the week in US dollars terms. The oil price rise was partly due to the news that China plans to accelerate its economic growth by increasing its investment in infrastructure, which in its turn could boost demand for some commodities, including oil.


The Russian equity market fell last week as the Vladimir Putin and Donald Trump meeting in Helsinki did not produce the hoped-for results. The meeting was followed by new discussions in the US Congress about potential sanctions against Russia for alleged US presidential election meddling, which aggravated investors’ concerns. 


The Russian equity market ended the week in the black, despite the fall in oil prices, with Brent crude falling by 3% in US dollar terms. The market was likely supported by investor expectations that many companies will release healthy financial results for the second quarter of 2018. Moreover, there was also some positive sentiment arising from anticipations of positive outcomes from the meeting between Donald Trump and Vladimir Putin that is due on 16 July in Helsinki.


The Russian equity market rose further last week, supported by positive news from a number of large companies, namely Sberbank, which published strong Russian accounting standards results for June; NOVATEK, whose stock continued to be supported by news that Korea Gas Corporation is considering entering into the Arctic LNG-2 project; and Gazprom, which is approaching the dividend record date. External factors were largely neutral: the MSCI Emerging Markets index was virtually flat and oil prices slipped by 2.6%, but remained near multi-year highs.


The Russian equity market rose last week mainly thanks to rising oil prices: the price of Brent crude surged by 4.8% in USD terms over the week. Positive sentiment was bolstered amid investor expectations of new US sanctions against Iran. These could involve demanding countries to stop purchasing Iranian oil and could as a result cause a tangible drop in oil supply. Meanwhile, further price support came from supply disruptions in Canada and uncertainty over oil exports from Libya.


The Russian equity market rose last week supported by oil prices, which rose by 3.5% in US dollar terms. Brent crude rose in anticipation of the OPEC+ oil producers’ ministerial meeting on Friday. 


The Russian equity market contracted last week in both USD and RUB terms, mainly due to oil prices contracting by 4.3% in USD terms amid statements by Saudi Arabia and Russia that at the OPEC ministerial meeting on 22 June they are planning to suggest an increase in oil production. Broad-based pressure on emerging market equities also added to negative investor sentiment.


The Russian equity market declined last week, while the price of Brent crude was relatively stable, decreasing only marginally, by 0.6% in USD terms.