Market Outlook

The Russian equity market was relatively flat for most of last week, coming under pressure on Friday after the US Treasury imposed financial sanctions against a number of Russian entities and individuals. 
The Russian equities market slipped last week on the negative sentiment arising from the news regarding the expelling of Russian diplomats from a number of countries and the symmetric response by Russia.

Last week was calm for Russian equities, with both USD and RUB market gauges changing only slightly despite the material 6.7% rise in the price of Brent crude oil to more than USD 70 per barrel.


The Russian equity market declined over the week while avoiding any significant volatility in the run-up to the presidential elections, which took place on 18 March. The main pressure on the RTS index came from Sberbank, whose stock declined as investors fixed their profits after the company’s share price had risen by more than 20% in rouble terms since the beginning of the year. 


Both the Russian equity market and the crude oil price rose last week. Crude increased by 1.3% in USD terms. The equity market increase was relatively broad, with 30 out of 45 RTS index constituents ending the week with gains.


The Russian equity market rally that started in the beginning of this year continued last week. The key market gauge in rouble terms, the MOEX index, reached an historical high, while the RTS index almost fully recovered its level from before the global stock sell-off in late January. The performance of the global MSCI World and MSCI Emerging Markets indices were more moderate, rising by just 0.1% and 1.4%, respectively.


The Russian equity market rose last week in line with the rebound in global stock markets following a similarly sized contraction the previous week. Both the MSCI Emerging Markets index and the MSCI Developed Markets index surged, by 5% and 4.2% in US dollar terms, respectively.


The Russian equity market contracted last week amid the global stock sell-off, although almost half of the contraction in US dollar terms was driven by the rouble weakening on the back of the fall in oil prices.