Stock market review for January 25, 2021: the correction continues

The correction intensified. The Moscow Exchange Index closed at a two-week low. The leaders of the decrease were (MTLR 72.50, -4.56). Outsiders among the most liquid securities were (TCSG 4,170, +4,22%). USD/RUB jumped above 75 amid falling oil and metals prices.

Market and company news

The market continues to correct. Decline in oil and metal prices, as well as the negative dynamics of high-tech securities in the U.S. contribute to the correction of the Russian stock market. We believe the ruble will remain stable, and by the end of the week we expect the exchange rate to fall in the range of 72-73, provided that oil prices hold above $54 per barrel. At the same time the stock market may correct, the target for the Moscow Exchange Index: 3,300 points.

Lenta (LNTA 275.75, -1.45%) will publish operating results for the fourth quarter and full year 2020. The sales volume could amount to 110 billion rubles. The company opened at least five large stores between October and December. Although traffic in the hypermarket segment continues to stagnate, judging by competitors' reports, Lenta does not think to curtail this direction. The volume of online segment could exceed 2 billion rubles. Good results of comparable sales could support quotations, which have been correcting since the beginning of the year.

LSR Group (LSRG 933.8, +1.54%) will release its production statements. Sales in the second half of the year could exceed RUB 45 bn on the back of higher prices and physical sales volumes. In our view, demand for real estate will strengthen on the back of low mortgage rates, the weakening ruble and expectations of correction on the stock market. Strong results and forecasts will also contribute to the growth of the developer's quotes.

(MAIL 1,949.2, -0.08%), spec. buy, target: 950 rubles. From the technical point of view, a rebound to the upper border of the downward channel of 2150 rubles is likely.

We expect decrease within 1%. Technical picture is in favor of the continuation of the correction. Forecast on the pair USD/RUB: the range of 74.50-75.00. Benchmark on the Mosbirch Index: the range of 3300-3350 points.