On Monday, with low trading volumes, the Moscow Exchange index decreased by 0.4% relative to Friday's closing levels, ending the evening session at around 2,890 points. At the same time, during trading, the market entered the area of 2,920 points, but was unable to hold positions at the highs of the day, being under selling pressure amid a moderate deterioration in the geopolitical background.
The outsiders of the market were Magnit securities (-4.1%), Mechel (-3.1%), Inarktika (-2.5%) and Segezha (-2%), which were under pressure from weak reports published by companies at the end of last week. Despite the growth of platinum group metals, sales were dominated by Norilsk Nickel securities (-1.8%). In our opinion, the company's shares remain a good bet on rising prices for base metals sold by the company, which will be supported by a weakening dollar trend and sustained industrial demand for platinum and copper. We continue to look positively at Norilsk NICKEL shares, maintaining our target for the company's shares over the 12-month horizon at 165p.
Polyus securities were trading better than the market (+2.1%), where the growth was supported by the steady dynamics of gold, which reached $3,500 per ounce this morning. The shares of PIK and Aeroplane also showed good dynamics, adding 1.2%. The quotes of developers are supported by the expectation of further softening of the housing market, which may lead to increased pent-up demand for housing.
In the morning today, the Russian stock market may test double support in the form of the 2880 level and a short-term uptrend starting from the July lows. This support may activate purchases, which will allow the market to attempt a recovery and recoup yesterday's losses. If it is breached, the next level of support for the Moscow Exchange index will be the mark of 2850 points. In our opinion, the target range for the Moscow Exchange index today is 2,850 – 2,920 points. Among the securities, we would like to mention Gazprom's shares, which may be better than the market today against the background of the agreements concluded at the SCO summit.
Bogdan Zvarich, Head of Banking and Financial Market Analysis at PSB.The "Comments" section of the AK&M news agency publishes materials submitted by Russian and foreign investment companies and banks. Their opinions may not coincide with the opinion of the editorial staff of the AK&M agency. The opinions presented in the comments are expressed taking into account the situation at the time of publication of the material. The comments are for informational purposes only; they do not constitute an offer or advice on the purchase or sale of securities. For questions about the placement of information in this section, please contact the agency's editorial office by phone (499) 132-61-30 ext. 0102.
