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$23.95 -0.2  -0.6%

Last Trade - 13/08/20

Sector
Financials
Size
Large Cap
Market Cap £3.60bn
Enterprise Value £3.67bn
Revenue £1.67bn
Position in Universe 196th / 1816

UPDATE 1-Russian rouble slips despite strong demand at OFZ auctions

Wed 13th May, 2020 4:32pm
(Updates prices, adds OFZ auction result)
    By Alexander Marrow
    MOSCOW, May 13 (Reuters) - The rouble fell slightly against
the dollar on Wednesday, supported by strong demand at Russian
treasury bond auctions, but buffeted by volatile oil prices as
the coronavirus outbreak continued to hang over global markets. 
   
    Federal Reserve Chair Jerome Powell warned of prolonged weak
economic growth in the United States and OPEC slashed its oil
demand forecast, but the rouble remained largely resilient, also
benefiting from continued foreign currency interventions by the
central bank.  urn:newsml:reuters.com:*:nU5N2BQ002
    Against this mixed backdrop, the rouble has no means of
clearing the boundary of 73-75 against the dollar this week,
Bank Saint Petersburg analysts said in a note. 
    By 1528 GMT, the rouble was 0.2% weaker against the dollar
at 73.86  RUBUTSTN=MCX  and had lost 0.1% to trade at 80.03
versus the euro  EURRUBTN=MCX .
    Expectations of a central bank rate cut in June pushed OFZ
treasury bond prices to record highs on Tuesday, with the yield
on the benchmark 10-year OFZ falling to 5.86%  RU10YT=RR , an
all-time low. The central bank cut the rate by half a percentage
point to 5.5% in late April.  urn:newsml:reuters.com:*:nL8N2CQ4P9
    The Russian finance ministry offered two series of OFZ
bonds, maturing in 2025 and 2035, enjoying strong demand,
usually seen as a gauge of investors' sentiment towards Russian
assets.      
    "On placement days, the rouble tends to strengthen," said
Andrei Kochetkov, leading analyst at Otkritie Brokerage. 
    The rouble was also buttressed by continued central bank
daily foreign currency sales, although they declined to the
equivalent of 14.7 billion roubles ($199.52 million), down from
around 20 billion roubles earlier last week.  
    The state FX sales, which the central bank reports with a
two-day lag, are pegged to prices for oil, an export vital to
Russia's economy. Global benchmark Brent crude futures  LCOc1 
were 0.9% lower at $29.73 a barrel.    
    Russian stock indexes were down.
    The dollar-denominated RTS index  .IRTS  was down 2.1% to
1,113.9 points. The rouble-based MOEX Russian index  .IMOEX  was
1.2% lower at 2,611.0 points.    
    Russian lender TCS Group  TCSq.L  reported a rise in
first-quarter net profit by 26% year-on-year and said it
expected to remain profitable in 2020, despite removing its
guidance for the year. Shares in the group were up 0.4% in
London.  urn:newsml:reuters.com:*:nR4N2CG04W 

    For Russian equities guide see  RU/EQUITY 
    For Russian treasury bonds see  0#RUTSY=MM 
    
($1 = 73.6755 roubles)

 (Reporting by Alexander Marrow; Editing by Toby Chopra)
 ((alexander.marrow@thomsonreuters.com; +7 495 775 1242;))
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