Investors perceive these assets as a protective segment of the stock market, able to survive periods of instability better than others, writes Forbes.ru with reference to analysts Freedom Finance Global.
The publication notes that quotes of Lukoil rose by 6.1% relative to the closing level of trading on Friday, February 27 – up to 5538 rubles at the peak. Rosneft shares soared 9.1% to 430.3 rubles. Tatneft shares rose 6.6% to 578.6 rubles. Shares of “Russneft” rose by 9.8%, up to 129.6 rubles. Gazpromneft added 6.2% to 537.9 rubles. Ordinary shares of “Surgutneftegaz” added 5.4%, up to 23.22 rubles, preferred securities rose by 4.2%, up to 47.38 rubles.
Shares of metal miners – gold, platinum, aluminum – are also growing. Polyus shares rose by 3.8%, up to 2,600 rubles. The securities of YGK rose by 5.8%, to 0.856 rubles. UC Rusal shares rose 2.2%, to 41.35 rubles.
The combination of factors looks favorable for Russian exporters, says Freedom Finance Global analyst Vladimir Chernov. Rising oil and gold prices directly increase companies’ revenue in currency, while a significant part of costs remain in rubles.
Additional support is also provided by the strengthening of the dollar, as export proceeds are converted at a more favorable exchange rate, Chernov added. “As a result, the market is mortgaging the improvement of financial performance of oil and gold mining companies in the coming quarters. Investors perceive them as a protective segment of the market, able to survive periods of global instability better than others,” the analyst explained.
