The stock market is trying to grow on the reduction of geopolitical risks
At the opening of the main trading session, Brent crude oil is down 0.3% and is near $66.1 per barrel. The situation with the coronavirus in Asia remains tense, putting pressure on the price of black gold.
Despite the decline in oil, the ruble looks stable. The national currency is supported by declining geopolitical tensions after yesterday's presidential address to the Federal Assembly. USD/RUB is down 0.3% and trading at 76.4.
Following the release of Q1 operating results, (+0.5%) and (+0.4%) traded slightly better than the market. The gold miner's revenues were up 20% to Q1 2020 levels at the beginning of the year. The retailer reported a 13% y/y increase in sales.
On the news of the buyback launch the stock is rising (+0.7%). The impact on the buyback on the stock is expected to be subdued, so the positive reaction of quotations may be temporary.
En+ securities are on the list of outsiders at the opening. The company's board of directors decided not to pay dividends for 2020. The news was not a surprise to the market, but there is a negative reaction at the moment.
NLMK is scheduled to publish its Q1 2021 financial report today. The results are expected to be strong thanks to higher steel prices at the beginning of the year. At the same time, free cash flow could come under pressure from working capital growth ahead of the construction season.
On Thursday, Rosneft's board of directors will decide on dividends for 2020. In the US, AT&T, Biogen, Intel, and Snap will report.
Leaders: Raspadskaya (+3.1%), Bashneft-ap (+1.8%), Mechel-ap (+1.5%), Mechel-ao (+1.2%), VSMPO-AVISMA (+0.9%)
Outsiders: Detsky Mir (-1.4%), Beluga (-1.0%), Rosseti AO (-0.9%), Inter RAO (-0.9%), En+ (-0.9%)