– The Russian stock market has strengthened decrease on Friday night amid a new wave of falling of the world markets because of the trade between the USA and China; fell appreciably shares of “RUSAL” (-17,7%) and GDR En+ (persons-17.9%) on the news on the inclusion of companies and their major shareholders in the “black list” of the U.S. Treasury.
Economy06 April 2018Минфин the US imposed sanctions against Russian billionaires and official licitaci read more
By 18:50 Moscow time the index of Mosuri made 2281,23 paragraph (-0,65%), RTS index – 1236,48 paragraph (-1,36%), ruble prices of the main “chips” on the Moscow stock exchange decreased by 3.3%.
The leaders of the fall were the shares of “Mechel” (-3,3%, the “preferred shares” dropped 2.8%), PJSC “Polyus” (-3,1%), Raspadskaya (-3%), “Sollers” (-2,6%), Sberbank (-2%, the “preferred shares” have decreased on 1,5%), LUKOIL (-1,3%), “Pipe metallurgical company” (-1,2%), RusHydro (-1,1%), “inter RAO UES” (-1%), NOVATEK (-1%), “Rosneft” (-0,9%), ALROSA (-0,8%), “Tatneft” (-0,7%), Magnit (-0,7%), “Gazprom oil” (down 0.6%), “Aeroflot” (-0,5%), “Mobile TeleSystems” (-0,4%), Sistema (-0,2%), Yandex (-0,1%), “”Masuri” (-0,1%), “FGC UES” (-0,1%), “Norilsk Nickel” (-0,1%).
Together with the increased paper of “Russian grids” (+7,9%, the “preferred shares” added to 7.6%), VTB (+2,7%), “Magnitogorsk metallurgical combine” (+1,3%), “Bashneft” (+1,1%), “Severstal” (+1%), Gazprom (+0,7%), “preferred shares” “Surgutneftegaz” and “Transneft” have risen in price by 0.3% and 0.2%, respectively.
Promotions of “Russian grids” reacted positively to the publication of financial statements under IFRS for the year 2017, according to which revenue rose by 5.3%, from 901 billion to 948,3 billion. EBITDA increased by 18.3 percent to 313,7 billion rubles, net profit – by 39.5%, to 137,1 billion. Net cash flow from operating activities reached 212,4 billion roubles, is spoken in the message of the company. The investment program of “Russian grids” in 2017 amounted to 262 billion rubles, almost half of these funds were directed to ensure grid connection to networks. Debt of Rosseti has remained at about the same level as in 2016 558 billion.
RUSAL shares and Depositary receipts En+ has dropped significantly on the news of the inclusion of companies and their major shareholders in the “black list” of the U.S. Treasury. In particular, it includes Oleg Deripaska and his basic assets of En+, and RUSAL, as well as the other major shareholder of “RUSAL” Viktor Vekselberg. Deripaska is now in control 48,13% of RUSAL and about 66% of En+. As planned, the share of “RUSAL” will grow up to 56.88% after the conversion of 8.75% stake in RUSAL, owned by Glencore, GDR En+. Vekselberg’s Sual Partners owns 26,5% of RUSAL following redemption of shares “Oneksima” in February.
The U.S. Treasury on Friday announced that, after consultation with the state Department, the us administration imposed sanctions against seven Russian businessmen, 12 companies, 17 government officials of the Russian Federation and against “Rosoboronexport” and the associated Bank. The press release noted that these sanctions are imposed according to the results released in January 2018, “the Kremlin report”, which, in turn, is the implementation adopted in the US in early August, 2017 law “On counteraction to opponents of the United States through sanctions” (Countering America’s Adversaries Through Sanctions Act; CAATSA). In a statement the head of Finance Stephen Mnuchin stated that the sanctions affect a number of persons that are directly benefited by the activities of the authorities of the Russian Federation for their own purposes, but also are themselves involved in “the promotion of the Russian harmful activity.”
According to experts of “Interfax-CEA”, the decline of the Russian market was the result of a downturn in global capital markets because of the new wave of trade between the USA and China, which negatively affects all risky assets. On Thursday, Donald trump has instructed U.S. trade representative to prepare a plan for the imposition of duties on goods of Chinese exports worth $100 billion in addition to the previous measures. Earlier, the US announced a plan to introduce a 25% duty for goods of Chinese exports totaling about $50 billion a year. Chinese authorities responded to the mirror, saying on Wednesday about its intention to impose similar duties on goods the U.S. exports the same amount. On Friday, the Ministry of Commerce of China said that Beijing does not want a trade war, but ready to fight. Against this background, the European stock market is down April 6 in the range of 0.2-1%, the us stock market in early trading about 1%.
Oil reference marks are cheaper on Friday and completes a substantial decrease in the current week on fears that the escalation of tensions on trade issues between the US and China will reduce the pace of global economic growth and hit fuel demand. The price of the June futures for Brent on London’s ICE Futures exchange to 18:50по Moscow time has decreased on 1,39% – to $67,38 per barrel. The cost of the futures on WTI for may to trading on the new York Mercantile exchange dropped by this time by 1.89% to $62,34 per barrel.
The total volume of shares traded on the main market of the Moscow exchange on Friday amounted to nearly 35 billion (10.4 billion had on ordinary shares).
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