– The Russian stock market opened Wednesday with mixed dynamics of prices of blue chips and indices on the background of a favorable external environment, indexes MICEX and RTS per minute bidding has changed within 0.1%, while securities sagged “Aeroflot” on the news about the sale quasicanonical package at a price below market.
By 10:01 Moscow time, the MICEX index amounted to 2047,82 points (-0.1%), RTS index – 1110 points (+0,1%); ruble prices of most of the major “chips” on “Moscow stock exchange” has changed within 2%.
The dollar is worth 58,13 ruble (-0.25 per penny).
Increased ruble-denominated shares of “Gazprom” (+0,1%), Magnit (+0,4%), RUSAL (+5,6%), “Surgutneftegaz” (+0,5%).
Dipped paper “Russian grids” (-1,4%), Sberbank (-0,9%), “Masuri” (-1,1%), LUKOIL (-0.2 percent).
Shares of “Aeroflot” for minute trading dipped by 1% (188,2 rubles), but quickly pared losses and came out at plus 0.5%. The rollback was triggered by the news about the sale of package quasicanonical of shares in the amount of 4.84% through the process of accelerated bookbuilding at a price of 182 rubles per share. The net proceeds the seller will be around 9.8 billion rubles, the funds will be used by Aeroflot for General corporate purposes, the company said.
Indices in the US on Tuesday reached historical highs in anticipation of the outcome of the meeting of the us Central Bank. Analysts do not expect changes in interest rates, however, it is expected that the fed will announce the reduction of assets on its balance sheet, which after incentive programs is about $4.5 trillion.
The Commerce Department on Tuesday reported that the number of buildings in the country in August unexpectedly fell by 0.8% from the previous month, however, due to the revision rate for July the total number was higher than market forecasts – 1.18 million against the expected 1,174 million
Experts point out that figures from the US housing market may show significant jumps in the coming months due to hurricanes that affected the second and third most populated States in the U.S. (Texas and Florida).
In Asia on Wednesday the dynamics of the indices combined (grew up Japan and China) in anticipation of news from the U.S. Federal reserve and Bank of Japan’s meeting, stable U.S. stock futures (contract on the S&P 500 index dipped 0.04%) and more expensive oil.
Oil is growing in anticipation of release on Wednesday, energy statistics on stocks and extraction of raw materials in the United States (17:30 Moscow time). Analysts expect a weakening of the growth rate of commercial stocks of crude oil, as refineries resume after the storm “Harvey” and plan to abandon the planned repair.
The price of November futures for Brent crude by 10:01 Moscow time on Wednesday was $55,48 per barrel (from+0.6% and -0.6% on Tuesday), the November price of WTI – $50,41 per barrel (+1% -0,9% the day before).
At least 13 U.S. refineries, including the largest enterprise in the country, which is operated by Motiva Enterprises, intend to delay the traditional autumn renovation work to produce more, the prices of which have increased. Thus, the US can avoid the usual autumn period of recession demand for oil.
The American petroleum Institute (API) on Tuesday said that the fuel reserves in the country rose last week by 1.4 million barrels (expected growth of 2.4 million barrels) of fuel – by 5.1 million barrels (expected reduction of 0.8 million barrels), distillate of 6.1 million barrels (expected reduction of 1 million barrels).
Additionally, traders await the outcome of the Ministerial meeting of OPEC countries and non-organization of States on monitoring the agreement to reduce oil production, which will take place on Friday.
Iraq and several other countries involved in the transaction OPEC+, stand for something, to increase the reduction of oil production by 1%, said Minister of oil of Iraq Jabbar Ali Husayn al-Luaibi.
According to a senior risk Manager IK “Nord-Capital” Vitaly Mangos in the morning the MICEX index will fluctuate close to 2050 points, the nearest supports will be the levels 2020 and 2040 points, resistance – 2060 and 2070 points.
After the neutral start of trading, the MICEX index will go into a state of the lateral movement on uncertain external background pending the outcome of the two-day session of Committee on open market U.S. Federal reserve. In the second half of the day an important reference point for participants in the local trading will remain the nature of changes in the value of oil futures. Contracts for “black gold” can significantly move after statistics, US Department of energy.
Senior analyst IR “freedom Finance” Bogdan Zvarich believes that the API data showed a fall in stocks of gasoline and distillates, can lead to a rise in Brent oil above $55,5 per barrel, which will contribute to the growth of Russian shares. While in Europe in early trading possible lateral movement, as well as in the United States pending the decision of the American regulator. If the data of U.S. Department of energy to confirm a significant reduction in stocks, Brent oil rise to near $56 per barrel, which will allow the Russian indexes to finish the auctions in positive territory.