Algo Capital in today’s market: what to buy and sell?
Today’s market is waiting for the opening of the MosBirzhi index, which should rise slightly within 0.1–0.3%, in the region of 2555-2560 p. 2550, 2540 p. Will act as the closest support. In addition, Experts are confident that after the start of trading has gone more actively, MosBirzh can go into a state of consolidation. Since the early improvement of the external background is not yet so large as to stimulate active purchases in Russian stocks.
Experts claim that in the tradition of the main external reference for the participants of local trading will be the activity of oil futures. In addition, one cannot disregard the impact of the publication of the preliminary April value of the US consumer confidence index from the University of Michigan.
Algo Capital: market conditions
Earlier, the main Russian stock indices of MosBirzh (-1.05%) and RTS (- 1.37%) completed the trade with a rather strong minus, when compared with the previous values. In the morning they tried to go up, but nevertheless by the evening, the negative prevailed on the market. This was largely due to the gradual fall in oil prices. In addition, the MosBirzh and RTS indices have been noticeably overbought since the beginning of April. Therefore, a corrective pullback from fresh highs has long ripened in them.
The MosBirge index met the expected support at the approaches to the significant “round” level of 2500 p. Further consolidation near the specified mark would be a good scenario for it. Although, as experts say, despite such a significant minus in just one day, the outlook for the MosBirz and RTS indices remains positive. By the way, futures for Brent crude oil continue to trade above the important mark of $ 70 per barrel. This factor is also an argument in favor of stabilizing Russian stock indices near current levels. Under the closing of the evening trading session, June futures for the RTS index (RIM9) came to a state of backwardation in the value of 17 p., Or about 1.4% relative to the base indicator. Thus, participants in the derivatives market retain a negative assessment of the medium-term outlook for the RTS index.
It is natural that after the decline of the indices of MosBirzh, the most liquid stocks fell after it. The leader of the fall among blue chips were Gazprom shares by as much as 3%. Shares could not resist the global negative market, despite the company’s positive message earlier. By the way, this news relates to the fact that the issuer’s board recommended paying a record-breaking annual dividend in the amount of 10.43 rubles. per share. Thus, the annual dividend yield on these securities may be about 6.6% of their current value. Although it is worth noting that formally this issue is still open since the board of directors has signed it.