The Russian equity market rose last week, driven mainly by oil prices surging by 2.2% in US dollar terms. Brent crude was likely supported by rising tensions between US and Iran following President Trump’s decision to pull out of the nuclear deal. The rouble strengthened on the back of higher oil prices, so the Russian equity market in did even better in US dollar terms.
In a 2-day workweek, which was shortened due to national holidays in Russia, the Russian equity market fell slightly as some investors likely decided to take their profits after gains over the last two weeks. Rising oil prices partially supported Russian equities: the price for Brent crude rose by 1.4% in USD terms over the week.
The Russian equity market rose last week, driven primarily by considerable positive contributions from Lukoil, Rosneft and Sberbank, whose stock prices rose by 4.9%, 12.4% and 4.4% respectively.
The Russian equity market rose last week, mainly on the back of investor relief as uncertainty eased about the consequences of the missile attack by the US, the UK and France in Syria. The tensions around the event had meant the market had struggled to rebound two weeks ago. Meanwhile, the correction two weeks ago made many Russian stocks attractive for investors, given that their fundamentals remained strong. The ongoing rise in oil prices also supported positive investor sentiment, with Brent crude trading above USD 73 per barrel for the first time since 2014.
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.