Equities: Mixed Signals But Uptrend Still On

Benchmark equity markets in emerging Europe closed out the month and the quarter with mixed results, highlighting the potential for divergence in relative performance going forward. Positively, our bullish key market view on the Russian RTS index (see Key Market Views: Bullish Russian Stocks September 23 in our online service) was reinforced on September 30, with the index closing strongly at 1,254, well above key support at 1,200. As a result, Russian equities appear to have firmly established themselves in a new higher trading range, with a further bull run up to 1,500 on the cards. Reinforcing this view, the bullish pattern that had developed on the moving average convergence divergence (MACD) has been affirmed through end-September, further suggesting that the market's uptrend is likely to continue through the medium term.

To read the full article, please choose one of the following options: