Revenue contribution: index Mosuri for the first time in history exceeded 3000 punctulata link
On 7 November, the index of the Moscow exchange for the first time broke the mark of 3000 points. Experts largely attribute the record increase with the voltage reduction in the trade war between the US and China, as well as with high profitability of Russian securities. According to analysts, the reduction of the key rate of the Central Bank can increase the attractiveness of the national companies. Thus, the expected inflow of money into the Russian stock market will strengthen the ruble.
- RIA Novosti
- © Sergey Mamontov
At auction on Thursday, November 7, index Mosberg has updated the historical maximum. The stock gauge rose 0.7% and for the first time observations (since 1997) rose above 3000 points.
In the middle of the day the main leaders of growth were shares of InterRAO (2,5%), M. Video (2,44%), «Surgutneftegaz» (2,3%), «Transneft» (1,88%) and MMK (1,8%). Such data leads the official website of the Moscow exchange.
Simultaneously with the growth of the Russian stock market demonstrates the strengthening of the national currency. Thus, the U.S. dollar declined 0.2 percent to 63.7 per ruble, and the Euro by 0.1% to 70.6 per ruble.
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The official exchange rates of the Central Bank on November 8, made up of 63.73 rubles per dollar and 70,55 rubles per Euro.
Record rise in shares of Russian companies, RT interviewed experts associated with the General positive mood on global stock market. So, global investors have positively apprehended news about reducing trade tensions between the US and China. In the case of a transaction Washington and Beijing can start to remove the restrictions imposed in the tariff war. About it November 7, said the official representative of the Ministry of Commerce of China Gao Feng.
In addition, the markets continue to play a risk reduction «hard» breccia. About this in an interview with RT told the head of group of analysts CAPT mark in real.
«It fears the strengthening of trade wars and the uncontrollable consequences of a British exit from the EU were in tense financial markets in recent months,» — said the expert.
The record growth of the Russian stock market analysts is also connected with the internal economic factors. So, today, investors are attracted to high yield securities of the national companies and low debt burden on the economy. About that RT told the General Director IK «Oriole Capital» Andrey Khokhrin.
«Russia’s net public debt has already reached negative values. The stock price has remained relatively low in Russian securities is almost three times cheaper than the American financial ratios, and the dividend yield remains high. Thus, if the world market there is a demand for stock assets, Russia is one of the primary recipients of this demand,» explained Khokhrin.
As noted in conversation with the RT expert on the stock market «BCS» Konstantin Karpov, currently, the yield on Russian equities is at historical highs and the average is about 6-7% per annum. The expert associates the record with the policy of the Bank of Russia.
From June 2019 the Central Bank is gradually reducing its key interest rate and today dropped it to 6.5% per annum. The regulator has such a policy to stimulate business activity and economic growth in General. In the long term, the actions of monetary authorities lead to cheaper loans, increase domestic demand and investment. As a result of lower rates of Russian companies have higher profits and stock value along with profitability begins to grow.
According to Karpov, an additional support for the shares of Russian commodity companies has a positive dynamics of oil prices. At the auction of November 7 the energy commodities Brent went up by 1.4% to us $62.6 per barrel. This is evidenced by the exchange ICE in London.
As noted by Andrew Khokhrin, since the beginning of the year, the Russian stock market rose almost 30% in the coming months may additionally add 5-10%. According to analysts, by the end of the year, the index Masuri will be in the range of 2900-3200 points. At the same time, Konstantin Karpov, predicts a market correction after reaching new historical highs. At the same time the EA waits for the preservation of stable rouble.
«Most likely, in the case of bargain between the US and China we will see the breakthrough of the market, after which investors will start to fix profit. Until the end of the year is still likely to increase, while the beginning of 2020 may be weak. Another reduction of interest rates by the Central Bank of the Russian Federation until the end of the year will be an additional incentive for the market. On the backdrop of the above factors, it is likely that the ruble will continue to remain strong», says Karpov.
According to analysts, the national currency support and the high demand for Russian debt securities. To date, the index of government bonds of the country (RGBI) has reached a peak for the past 17 years and is trading above 150 points. The reduction in the rate of the Central Bank over time will make investments in Federal loan bonds (OFZ) less profitable, so market players try to advance to buy securities at a bargain price. About this in an interview with RT told QBF analyst Oleg Bogdanov.
«While a rate cut is not finished, we have a price increase on the market of government securities. The yield of Federal bonds with a maturity of one year had fallen below 6%. The market is ahead of the curve and government bonds steadily becoming more expensive. It’s starting to attract investors, therefore, supports the ruble,» — said Bogdanov.
Assessment Mark Goichman until the end of the year, the dollar may remain in the range of 63-64 of the ruble. While Andrew Khokhrin allowed a reduction of the dollar to 60 rubles, and euros — up to 70 rubles.