Page 61 - RusRPTOct19

unchanged, since the biggest drivers of Russia’s outperformance, corporate governance improvements and sanctions sentiment dissipation, lack further triggers,” VTB Capital (VTBC) said in a note.
This year is turning out to be “a game of two halves,” for the financial markets according to VTBC. “The first half of the year featured a decent equity market performance, bolstered by expectations of an early resolution to trade disputes and above-trend growth. The sell-off in the second half of the year was triggered by the Fed’s unclear approach to looser policy and the increased trade tensions that are raising global recession risks,” VTBC said in a note on the equity market outlook.
While the VTBC outlook for the RTS of 1,250 suggests a small retreat this year, the outlook for the best stocks has a 17% upside for the rest of the year.
Bottom-up RTS index target from analyst estimates (as of 4 September) – top-10 contributors
Instrument Ticker In RTS
Sberbank, ord. SBER
Rosneft, ord.* ROSN
RTS Current Weigh price t, % USD
14.14 3.43
4.56 6.27
12-mo Target price, USD
5.29
8.85
Upsid Contributi e,% on, pts
54% 102
41% 25
74% 13
14% 10 21% 47 30% 13 31% 10
35% 57 14% 9
33% 12
Inter RAO, ord.
IRAO 1.3 0.0638 0.111
NOVATEK, ord.
NVTK 5.62 19.95 22.73
Lukoil, ord.
LKOH 16.72 82.42 99.87
Yandex, ord.
YNDX 3.18
Alrosa, ord.
ALRS 2.36
Gazprom, ord.
GAZP 12.1
Tatneft, ord.
TATN 4.97
Magnit, ord.*
MGNT 2.67
37.61 49.02 1.1282 1.4806
3.53 4.77 11.19 12.77
54.57 72.77
61 RUSSIA Country Report October 2019 ww.intellinews.com