Russian stocks correct down on unfavorable external background
MOSCOW, Feb 27 (PRIME) -- Russian stocks corrected downward on Tuesday due to an unfavorable external background and a flow of negative news while investors were waiting for Jerome Powell, the chairman of the U.S. Federal Reserve System (Fed), to make his speech before the U.S. Congress, analysts said.
The MOEX Russia Index fell 0.48% to 2,341.89 and the RTS decreased 1.04% to 1,310.84.
УAfter a dynamic Monday full with news, market players had a deficit of ideas on Tuesday coupled with a moderately negative external background. If external markets do not resume their growth, it is very likely that national indices will continue their downward movement,Ф Andrei Kochetkov, an analyst at Otkritie Broker, said.
Yevgeniya Abramovich, head of the currency risks research department at Swiss brokerage house Dukascopy Bank SA, said that investor activity was low as they were waiting for PowellТs speech before the Congress.
УIf Powell does not give a clear signal of keeping a soft and steady increase of the rates, market players will fear a rapid toughening of the U.S. monetary policy, which will lead to a slump of shares and a rise of the U.S. dollar,Ф Abramovich said.
Yelena Kozhukhova, an analyst at investment company Veles Broker, said that trade on the local market was also under pressure from the Monday statement of the U.S. Treasury Secretary Steven Mnuchin that the authority planned to introduce new anti-Russian sanctions within 30 days.
Kochetkov also said that shares of RussiaТs second largest bank VTB lost 1.52% to 0.05472 rubles in correction after a Monday jump.
Shares of retailer Magnit rose 1.64% to 4,882 rubles. Trade in the securities has been highly volatile as investors were still digesting a change of the core owner and understand its possible outcomes, Kochetkov said.
Below are the MOEX Russia IndexТ five most active stocks on Tuesday:
|Company||Change, %||Last price, rbl||Trading volume, bln rbl|
(55.9208 rubles Ц U.S. $1)