Stock Market Outlook for August 6, 2021

In the course of trading on August 5, positive dynamics prevailed on domestic platforms. Mosbirji index came close to the peaks of mid-July. The leaders of growth on corporate news were shares of BSP (BSPB 70.49, +5.7%). Among the most liquid securities, the outsiders were (QIWI 720.5, -1.84%). The USD/RUB pair was trading near 73.

The investment community's reaction to the report (GMKN 25,516, +0.28%) was weak. At the same time, GMK's results exceeded expectations. Due to higher metal prices, the company's revenue increased to $8.9 bln, although nickel and copper output declined. EBITDA margin reached a record 64%. Debt burden did not change significantly, despite a significant reduction in cash flows due to higher capex, penalty and dividend payments. We raised our outlook on Nornickel's financials for the second half of the year. We believe that the company's revenues could reach $20 bln with EBITDA of $11.2 bln. The positive dynamics of these indicators will not be hindered by higher taxes, provided that there is no significant and prolonged correction in the prices of key metals. We raised our target for the stock to 35k over 12 months.

(MTSS 316.30, -0.03%), spec. buy, target RUB 330. Shares of the telecom operator have reached the nearest support. Their dividend yield at current quotations exceeds 8% excluding taxes, which insures the stock from a strong correction. MTS' results for the second quarter may exceed forecasts due to higher revenues from mobile communications and subsidiary projects.

We expect multidirectional dynamics. The external background is positive, but investors will not actively build up long positions before the weekend. Moscow Exchange index benchmark: range of 3800-3850 p. Forecast for USD/RUB: 73.00-73.50.