On Tuesday, 19 November, the Russian stock market accelerated its decline amid another round of escalation in the Russian-Ukrainian conflict.
The MosBirch index fell by 3.32% to 2,630.51 points, while the dollar-denominated RTS collapsed by 3.41% to 828.38 points.
The Bank of Russia’s official dollar exchange rate for 20 November was 100.0348 rubles (+0.09%), while the euro exchange rate was 105.7338 rubles (+0.26%).
Brent crude oil futures rose by 0.05% today, reaching $73.35 per barrel.
Negative investor sentiment on the Russian market was exacerbated by the Ministry of Defence’s reports of the AFU striking a military facility in the Bryansk region with ATACMS missiles. At the same time, Russian President Vladimir Putin today signed a decree approving the Fundamentals of Russia’s state policy in the field of nuclear deterrence.
Today, the head of the Bank of Russia Elvira Nabiullina also made a speech in the State Duma. According to her, the Central Bank expects inflation to slow down to 4.5-5 per cent next year. She also said that in the absence of additional shocks, the Central Bank will start reducing the key rate in 2025.
In 3Q24, MTS’ IFRS net profit fell 88% to RUB 1bn, while revenue increased 15% to RUB 180.4bn. According to the company’s management, interest expenses put pressure on net profit. MTS shares fell by 4.0%.
Meanwhile, in 3Q24, MTS Bank reduced its IFRS net profit by 21% to RUB 4.1bn, due to the effect of a high base last year. The lender’s securities fell in price by 3.0%.
Astra Group’s adjusted IFRS net profit for 9M2024 jumped 68% YoY to RUB 2.4bn, while revenue rose 84% YoY to RUB 8.6bn, driven by more than fourfold growth in ecosystem product sales and more than double growth in product support revenues. Nevertheless, Astra Group’s share price declined by 1.9%.
MosBirch Index
The MosBirch Index fell below 2700 points, breaking through an important support level of 2650 points. The Relative Strength Index (RSI) does not indicate oversold, which keeps the probability of further decline to the next support level around 2570 points.
The US market started the day with a decline
Key US stock indices declined by the middle of the trading session amid increased tension around the Russian-Ukrainian conflict.
The blue-chip index Dow Jones Industrial Average fell by 0.84% to 43,026.68 points, the broad market index S&P 500 fell by 0.43% to 5,868.55 points, and the Nasdaq Composite weakened by 0.23% to 18,478.53 points.
According to the US Commerce Department, the number of new construction starts in October fell 3.1% m/m to 1.31 million. Economists had expected the figure to be 1.34 million. The number of building permits issued for new homes, meanwhile, fell 0.6% m/m to 1.42 million against experts’ expectations of 1.43 million.
Walmart shares rose 4.1% on the back of a positive quarterly report. The largest US retailer beat analysts’ expectations on revenue and net profit, and revised its 2024 results forecast upwards.
Shares of Super Micro Computer soared by 30.6 per cent after the news that the US server maker has found a new auditor in the person of BDO. Earlier, the auditing company Ernst&Young refused to work with Super Micro because of suspicions of manipulation of financial statements. Because of these problems, Super Micro was late in filing its annual report with the US Securities and Exchange Commission.
In the U.S. technology sector today is observed multidirectional dynamics: shares of Microsoft declined by 0.6%, while securities Alphabet and Amazon rose by 0.2%. The capitalisation of Apple grew by 0.5%.
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