MOSCOW, Jun 17 (PRIME) -- The Russian stock market declined on Thursday after the U.S. Federal Reserve System (Fed) forecast a key rate growth in 2023 and the U.S. dollar strengthened, analysts said.
The MOEX Russia Index fell 0.28% to 3,819.07, and the RTS index decreased 0.87% to 1,664.38.
"The Fed forecast became an unpleasant surprise for the market. However, there is little bad in the possibility of a rate growth in 2023. It will happen in two years, and the plans of the U.S. ruler can change. Nevertheless, an unexpected thing occurred, which forced investors to price in the plan. The U.S. dollar surged pressurizing a broad range of assets including oil," Andrei Kochetkov, lead analyst for global research at Otkritie Broker, said.
He said that the local market declined as well and reached support of 3,800–3,820. The rise can resume as soon as the surprise factor from Fed decision fizzles out, he said.
Yelena Kozhukhova, analyst at Veles Capital, said that the external background for the Russian trading session was moderately negative as Brent and WTI futures fell, although the decline narrowed to less than 0.5% in the middle of the session. The European market indices and the U.S. market futures were moderately negative.
Acron decreased from highs of the session but was supported by the news that the company will buy back 4.05 million shares at 6,050 rubles per share and rose 0.87%, Kozhukhova said.
Metals companies were under the pressure as metals prices decreased on the back of strengthening of the U.S. dollar. The gold prices dove more than 3% to U.S. $1,800 per ounce, she said.
Magnit increased 0.87% after X5 Retail Group became a market leader, and also ahead of the closure of the shareholder register for dividends for 2020 on June 25.
Below are the MOEX Russia Index’ five most active stocks on Thursday:
| Company | Change, % | Last price, rbl | Trading volume, bln rbl |
|---|---|---|---|
| Sberbank | +1.05 | 314.89 | 13.029 |
| Norilsk Nickel | -3 | 24894 | 12.647 |
| Gazprom | +0.63 | 273.5 | 10.858 |
| Lukoil | +1.12 | 6665.5 | 10.595 |
| Rosneft | -0.42 | 538.95 | 7.876 |
(72.0323 – U.S. $1)
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