MARKET COMMENT - CYCLICALS CHARGED AHEAD YESTERDAY, CONSOLIDATION SIGNALS TODAYMarkets tended to bounce back, with notably strong performances in cyclicals and US small-caps. The MSCI EM was flat, held back by a 0.4% drop in China. The MSCI DM gained 0.5%. Russia outperformed, the RTS climbing 1.3% to 1,867 with gas and financials among the leaders. While few global catalysts have emerged this morning, APAC markets are following domestic developments, and global and Russia indicators suggest a b...
CIS EUROBOND MARKETRussia's sovereign curve traded in the red yesterday in response to higher US Treasury yields and a pickup in geopolitical risks. The Russia 47 widened 3 bps in yield (-0.7 pp in price), while yields along the rest of the curve climbed 1-2 bps. In the non-investment grade segment, Ukraine was the main laggard, the sovereign curve shifting 10-20 bps higher.GOVERNMENT DEBTThe inversion of the OFZ curve eased somewhat yesterday, as yields rose 2-9 bps at the short end and 10-13 b...
MARKET COMMENT - INFLATION CONCERNS WEIGH ON STOCKS, COMMODITIESThe MSCI ACWI fell 0.5% as tailwinds from earnings coverage faded and markets returned to concerns about global growth and inflation. Cyclical sectors were under particular pressure, and this was reflected in a 1.3% fall for the RTS to 1,891. Today's APAC session is seeing a continuing decline in stocks and commodities, while a heavy results calendar, the ECB decision and Moscow's "non-working" period are in focus today.STORIES> Ind...
MARKET COMMENT - A GENTLY HAWKISH FED FAILED TO OFFSET STOCK GAINSStock markets trended slightly higher, and the US managed to hold on to a 1% rise even after the delivery of a gently hawkish message from the Fed on tapering asset purchases. Russia was one of the best performers, the RTS rising 2.1% to 1,747. AmCham's conference, several central bank decisions and reports, and US data releases are among items that may be of interest to investors or affect markets today.STORIES> US draft amendmen...
MARKET COMMENT - HINTS OF DIP-BUYING, MSCI, MERKEL'S VISIT AND RESULTS ON THE AGENDARising chances for a near-term tapering of Fed asset purchases sent stock markets downward yesterday, the MSCI EM and RTS (1,636) declining 2.3-2.4%. APAC markets remain weak today, though other index futures and commodities offer some hints of investors stepping back in to buy the dip. MSCI's 10-40 decision (Novatek replacing Nornickel), German Chancellor Angela Merkel's visit to Moscow and company results are i...
MARKET COMMENT - CHINESE, US CONCERNS DRAG ON INDEXES; RUSSIA OUTPERFORMSSluggish Chinese growth indicators and talk of the Fed tapering asset purchases provided markets with plenty of reasons for caution. The MSCI ACWI slipped 0.2%. Russia was an outperformer with a 0.5% gain on the RTS to 1,674. Internet and energy stocks fared best, with particular gains for Yandex (+2.3%) and Novatek (+2.2%). Indicators look weak across the globe this morning.STORIES> European gas prices hit new records on r...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
MARKET COMMENT - JULY ENDS ON A WEAK NOTE; GLOBAL OUTLOOK BETTER, RUSSIA FLAT TODAYGlobal markets ended July on a low note, the MSCI ACWI down 0.7% and RTS (1,626) down 0.8%. US-China and tech sector concerns drove declines, perhaps along with monthly window-dressing. Global indicators are better this morning, but Russia numbers are flat heading into the open. STORIES> Finance Ministry provides general update on oil tax changes> Tatneft reports solid 2Q21 update> CBR increases risk weights for h...
MARKET COMMENT - GRINDING HIGHER ON STRONGER COMMODITIES, HOPING FOR SUPPORT FROM GEOPOLITICSThe Russian market shrugged off headlines about an incident with a British warship in the Black Sea. Meanwhile, the day also saw news about an EU initiative for closer engagement with Russia. STORIES> Weekly inflation remains at 0.1%, average daily price growth slightly up> Russian industrial output for May up 11.8%> European spot gas prices approached 10 years high> Tinkoff business strategy day> Mubada...
КОММЕНТАРИЙ И ПРОГНОЗ - РОССИЙСКИЙ РЫНОК ВЫРОС БЛАГОДАРЯ СЫРЬЕВЫМ КОТИРОВКАМ, ПОЛИТИЧЕСКИЕ ФАКТОРЫ МОГУТ ОКАЗАТЬ ДАЛЬНЕЙШУЮ ПОДДЕРЖКУРоссийский рынок проигнорировал новости об инциденте с британским эсминцем в Черном море. Также появились новости о том, что ЕС собирается обсудить возможность сближения с Россией. НОВОСТИ> Недельная инфляция в России осталась на уровне 0,1%, среднесуточная немного ускорилась> Рост промышленного производства в РФ в мае ускорился до 11,8%> Спотовые цены на газ в Евр...
КОММЕНТАРИЙ И ПРОГНОЗ - ИНВЕСТОРЫ ЖДУТ ПОЛИТИЧЕСКИХ ЗАЯВЛЕНИЙ ИЗ США, ГЛОБАЛЬНЫЕ РЫНКИ РАСТУТВо время торгов в регионах АТР и EMEA рынки консолидировались, но в конце дня несколько позитивных новостей из США оказали им поддержку. MSCI Europe снизился на 0,5%, S&P 500 подрос на 0,5%. Сегодня утром рынки АТР и фьючерсы на фондовые индексы западных стран растут. Между тем индекс РТС вчера отступил на 1,4% до 1 417 пунктов. Сегодня утром большинство индикаторов указывают на рост, при этом рынок ожид...
MARKET COMMENT - WATCHING FOR US POLICY ANNOUNCEMENTS WHILE GLOBAL MARKETS RALLYMarkets consolidated through the APAC and EMEA sessions, but several positive US headlines produced a rally late in the day. While the MSCI Europe fell 0.5%, the S&P 500 managed a 0.5% gain. APAC indexes and Western futures are up this morning. As for Russia, the RTS declined 1.4% to 1,417 yesterday. Most morning indicators are positive, while the market also watches for possible US policy announcements. STORIES> Wee...
The adoption of ESG principles has already significantly altered the investment landscape and is showing no signs of slowing down. For Russia, the rise of ESG globally has been the main catalyst for its development domestically. We expect that over the near term Russian companies will continue to expand their efforts in the ESG sphere in order to improve their attractiveness to investors and widen the investor base. In this report, we provide an overview of forthcoming changes in legislation per...
КОММЕНТАРИЙ И ПРОГНОЗ - ФОНДОВЫЕ РЫНКИ ПОД ДАВЛЕНИЕМ ИЗ-ЗА ОПАСЕНИЙ, ЧТО ВОССТАНОВЛЕНИЕ ЭКОНОМИКИ БУДЕТ МЕДЛЕННЫМ; РОССИЯ В ЧИСЛЕ ОТСТАЮЩИХГлобальные рынки вчера отступали на фоне опасений, что восстановление после пандемии будет медленнее и слабее, чем ожидалось. Индекс MSCI ACWI снизился на 0,8%. Россия оказалась в числе отстающих, индекс РТС упал на 2,2% до 1 436 пунктов на фоне снижения цен на нефть и политических опасений. Утренние индикаторы для глобального и российского рынков указывают н...
MARKET COMMENT - RECOVERY FEARS HITTING STOCKS; RUSSIA UNDERPERFORMING ON LOW VOLUMESGlobal markets were weak on the back of fears that the recovery from Covid-19 has been slower and weaker than hoped, the MSCI ACWI falling 0.8%. Russia was among the weakest performers, the RTS declining 2.2% to 1,436 on a mix of oil and political concerns. Global and Russia-specific indicators continue to lean weak this morning.STORIES> HeadHunter: Market share gains to HOLD> En+: Rusal upgrade lifts En+ valuat...
After incorporating Rusal's 2020 figures into our model and updating our projections for the En+ power segment, we have raised our target price for En+ to $14.40 per GDR and introduced a ruble TP of R1,066. We reiterate our BUY rating on the stock, but we note that the upside now comes from Rusal's valuation, as the current implied valuation of the power segment is about in line with our fair value estimate based on an equal weighting of DCF and DDM. In this respect, it might make more sense to ...
MARKET COMMENT - GLOBAL SENTIMENT SOURS ON COVID, STIMULUS, CHINA, VALUATION CONCERNSLike many peers, Russia opened stronger but then struggled, the RTS ending the day down 0.4% at 1,412. Global sentiment soured overnight on a mix of negative Covid-19, US stimulus, Chinese market and US-China headlines - as well as a return to debates over whether valuations have become too stretched.STORIES> SberCIB Trade Ideas> Industrial production growth accelerates heading into end of 2020> En+ Group "fires...
КОММЕНТАРИЙ И ПРОГНОЗ - СООБЩЕНИЯ О НОВЫХ САНКЦИЯХ ПРОТИВ КИТАЙСКИХ КОМПАНИЙ МЕШАЮТ РОСТУ ГЛОБАЛЬНЫХ РЫНКОВ; В РОССИИ В ЦЕНТРЕ ВНИМАНИЯ ЦБ РФ И ОБВИНЕНИЯ В ХАКЕРСКИХ АТАКАХИндекс MSCI ACWI прибавил 0,8%: новости по программам стимулирования в США и ЕС поддержали рынки. Тем не менее сегодня торговые площадки отступают из-за сообщений, что США, возможно, наложат запрет на владение ценными бумагами еще 80 китайских компаний. Из событий, могущих повлиять на российские активы, сегодня в центре вниман...
MARKET COMMENT - RALLY FALTERS ON SECURITIES BAN NEWS; CBR, HACKING CLAIMS IN FOCUS FOR RUSSIAThe MSCI ACWI gained 0.8% as US and EU stimulus headlines propped up markets, but today markets are retreating after news the US may ban holding securities of another 80 Chinese companies. The CBR meeting and another round of headlines on the SolarWinds hack are in focus for Russia this morning. STORIES> EM equities see 7th straight week of inflows but a downward trend> Bloomberg: Deripaska "continued t...
КОММЕÐТÐРИЙ И ПРОГÐОЗ - ГЛОБÐЛЬÐЫЕ РЫÐКИ ОТСТУПИЛИ ÐРФОÐЕ ПÐДЕÐИЯ КОТИРОВОК ИÐТЕРÐЕТ-КОМПÐÐИЙ; ÐÐТО ОБСУДИТ ПОЛИТИКУ Ð’ ОТÐОШЕÐИИ РОССИИ Глобальные рынки вчера ÑнижалиÑÑŒ: Ð¸Ð½Ð´ÐµÐºÑ MSCI ACWI упал на 2,5%. Ðаибольшее падение зафикÑировано в котировках интернет-компаний и на америÐ...
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