Moscow Exchange - Closing Outperform Trade Idea
We are closing the trade idea that we opened on January 25 for Moscow Exchange (MOEX) to outperform the Russian market. Since we opened the trade, MOEX has risen 3% (in ruble terms) versus IMOEX's flat showing. WHY ARE WE CLOSING THIS TRADE IDEA?We opened the trade idea on expectations of higher geopolitical and market volatility as well as tailwinds in terms of strong fundamentals around the pending 4Q20 results and recent trading data. While this has largely played out, including a record-breaking 4Q20 set of numbers last week, we regard the 2021 cost guidance as a negative surprise and one that is likely to lead to earnings downgrades. The 2020 dividend recommendation equating to an 85% payout also came in below our expectation. We therefore close the trade idea.Moskovskaya Birzha MMVB-RTS PAO. Moskovskaya Birzha MMVB-RTS PAO (MMVB-RTS OAO) is a Russia-based integrated stock exchange that provides electronic trade organization, clearing and settlements on trades, depository and information services. The Company provides trading and settlement services in such segments of the financial market as foreign exchange (FX) market, federal bonds market, market of derivative financial instruments, cash equities market, corporate and regional fixed income market, commodities market, as well as market for state and municipal orders. The Company was established as a result of the merger between MMVB ZAO and RTS OAO. It operates through six branches and three representative offices. As of February 27, 2013, the Company's major shareholder was the Central bank of the Russian Federation with a stake of 22.47%. In January 24, 2014, the Company sold its whole stake in MMVB-IT ZAO.
Sberbank CIB Investment Research is a research firm offering equity, fixed income, economics, and strategy research. It covers analysis on all aspects of Russia’s capital markets, issues and industries. The firm analyzes trends in Russia and combines local knowledge with a global perspective. It processes macroeconomic data, market and company-specific news, stock quotes and other information for providing research reports. The firm provides details and latest prices on the most traded names and most traded paper on all segments Russian market. In strategy research, it provides thematic research, tips and descriptions of the methodology used to evaluate companies.
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