The Russian equities market monthly roundup
The upbeat statements from the annual meetings of shareholders of Russian top companies — so-called ‘blue chips — were unable to galvanize the local stocks market to finish the entire month in the positive zone. Thus, according to trade volumes, the RTS-1, the index that tracks the performances of the blue chips on the RTS Exchange, surged by 0.84% to 955.45 at the end of June, while the MICEX Index dropped 0.10% to close the month at 960.16. Both figures were lower than similar value for May.
This mixed dynamics has been attributed to the ambiguous market reactions to the plans disclosed by the boards of directors at companies’ AGMs, the overall difficult situations in the national and global economies, especially the increasing negative sentiments on the Western European and U.S. stock platforms and the persistence of the destabilization effects of the ongoing oil price volatility on the local economy.
For instance, the positive market reactions to the Gazprom and Norilsk Nickel managements’ plans at their AGMs catapulted the companies’ shares into robust growth, at 2.4% and 4.0%, respectively. However, the overall market reactions to Sberbank and LUKoil managements’ pronouncements at their AGMs were rather lukewarm, thus pushing their shares down by 3.9% and 2.4%. This negative dynamics spread over to the other first-echelon equities, pushing the whole Russian stocks market into red in June. The local equities market is now on standby to react to new industry trends in July.
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