Strong relaxation of the ruble will continue to put pressure on the equities of companies focusing on domestic demand

On Friday the Russian market continued to decline under the pressure of the negative external background and the significant weakening of the exchange rate: RTS (-5.6%), Moscow Interbank Currency Exchange (-2.8%).

Shares of oil and gas sector look somewhat better than the market, despite a temporary decrease in petroleum quotations below $ 60 a barrel: Gazprom (-2,5%), Lukoil (-0.4%), Surgutneftegaz (-2.4%). Papers, Rosneft has become a leader among the blue chips, adding 1.7% on the possibility of to put on 157 rubles to 5 August. The steel sector also looked better than most markets: IMC (0%), NLMK (-1.8%), Severstal (-1.5%). Among the outsiders were allocated shares of banks: Sberbank (-5.1%), VTB (-5,7%).

On Friday, American stock indices are not recorded significant changes, S P500 index lost within 0.5%, while outsiders are allocated shares of banks and oil companies. The threat of slowing down the process of restoring the world economy still dominates the financial markets. Against this backdrop, Asian stock market indicators today in the morning trading in the negative range, on average, losing 1,5-2%. The decline in commodity markets suspended: Oil futures traded at $ 60, show the relative stability and quotes of non-ferrous metals.

According to our estimates, a morning background remains negative, and the Russian market is unlikely to prevent another wave of decline at the opening. Stability of oil quotations able to support oil and gas securities companies, which at current levels are attractive. Strong relaxation of the ruble on Friday, probably will continue to put pressure on the equities of companies oriented to domestic demand.


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