Market Outlook


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. 


The Russian equity market declined marginally last week amid an absence of any market-driving news. That said, Russian equities outperformed their emerging market peers, as the MSCI EM index fell by 0.6% in US dollar terms. 


The Russian equity market remained almost flat last week despite some contraction in oil prices. Brent crude fell by 2.9% in US dollar terms on the back of the news that OPEC and non-OPEC countries may increase oil production by 1 million barrels per day.