Russian stock market declines amid falling ruble and shares “Bashneft” – RIA Novosti

16:07 17.08.2016

(updated: 16:10 17.08.2016 )

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MOSCOW, August 17 – RIA Novosti / Prime, Elena Lykov. The Russian stock market on Wednesday, decreases in major indices on the background of the fall of the ruble and shares “Bashneft”, which have a large weight in the index calculation.

The MICEX index to 15.51 MSK decreased by 0.3% – to 1969.94 points, the RTS index – on 0,36% – to 971.27 points, follows from the Moscow Stock Exchange data dollar exchange rate calculations “tomorrow” has grown by 12 cents – up to 63.89 rubles, euro – by 6 cents – up to 72.01 rubles

The October futures for Brent oil grew by 0.08%. -. to 49.27 dollars per barrel

Bashneft Rosneft vs

The shares of “Rosneft” have slowed the rate of decline and are down 0.19% on statements of the first Deputy Prime Minister Igor Shuvalov of that the privatization of the company came to the fore. Before applications shares of “Rosneft” were down 0,54%.

According to Shuvalov, the privatization of “Bashneft”, the Russian government will come back after the sale of shares of “Rosneft”. On Tuesday, after the close of trading on the Moscow stock exchange’s press secretary Natalya Timakova, head of the Russian government announced that Prime Minister Dmitry Medvedev has decided to postpone the privatization of “Bashneft” at a later date, the President of Russia Vladimir Putin supported him.

In morning trading, market participants reacted very negatively to this unexpected event, and the ordinary shares “Bashneft” in the moment have fallen by 15.3% – up to 2.654 thousand rubles.

By mid-afternoon the players became more relaxed react to the privatization of the transfer of “Bashneft”, and shares of the company slowed the pace of decline

By the current moment the ordinary shares “Bashneft” fall to 9.64% -. to 2.83 thousand, preferred shares – 2.16% to 1,923 thousand rubles.

Corporate history

Shares “Fosagro” are reduced by 0.72%, despite the growth of net profit under IFRS for the first half of the current year 30% compared to the same period in 2015, to 36.114 billion rubles.

The second quarter for “Fosagro” was expectedly negative amid falling dollar prices for fertilizers and the strengthening of the ruble, said Vasily Tanurcov of “Veles Capital”.

“We estimate statements as moderately negative, at the same time, we agree with the company’s management that the fertilizer market has actually reached the bottom and in a short time can be expected to reduce production, especially with regard to phosphorus fertilizers (however, the reduction is not It will be fast due to the replacement of retired capacities of the new as a result of the expected autumn launch new facilities in Morocco) that will support prices, “- he commented

Favorable weather conditions and seasonal demand in India should maintain the import until the second half of October. stabilizing effect on the market will increase purchases in Brazil and Argentina in August and September, before the start of the season planting soybeans in October, adds the analyst.

It is also worth noting that the directors’ Fosagro “advice, one of the world’s leading producers of phosphate fertilizers, recommended that shareholders submit to the interim dividend of 4.274 billion rubles, or 33 rubles per ordinary share.

Analysts at Alfa Bank expect payment disappoint the market with a dividend yield of 4-5% by the end of the year, while the market expects it at 7-9%.

Leaders and outsiders

Among the leaders – the paper “Mechel” (preferred shares rising 2.77%, ordinary shares – 1.27%), the shares of “Rossetti” (2.16%), “Raspadskaya” (1.98%), ALROSA (1.54%), NLMK (1.53%), as well as shares of NCSP (1,18%)

Among the leaders of the decline -. TMK shares (-2.42%), “Sollers” (-2.39%), “Akron” (-2.36%) and shares of the Moscow stock Exchange (-1,82%).

Forecasts and recommendations

oil prices will decline in the second half of the day, thus exerting pressure on the Russian market, says the head of foreign exchange risk management analysis Dukascopy Bank SA Yevgeny Abramovich. The reason for this will be the growing fears of toughening rhetoric of the voting members of the Fed, which will be reflected in the minutes of the last meeting of the FOMC, she explains.

However, support for oil contracts could have a yield of US Department of Energy report, if it will be reported on the reduction of oil production US, adds the analyst.

In the stock market, including due to the situation with “Bashneft”, continue slabonegativnaya dynamics before the end of the day, George believes the company Vashchenko “Freedom Finance”. By the close of a correction key issue within the 0.5% benchmark MICEX index – 1970-1980 points, he predicts

.