People sold stocks, but not the market.
The population exchanged shares for bonds and coins.
The central bank published a review of financial market risks for October.
Everything is fine - but with reservations.
The picture turned out to be almost celebratory: the dollar fell 4.6% to 80.56 rubles, the yuan lost 3.9%, and the Moscow Stock Exchange Index rose 10.7% to 2,509 points.
The Russian Stock Exchange suddenly remembered that it is actually a stock exchange. Expensive oil and expectations of positive political news helped. The construction companies were particularly successful - plus 30.6%, electricity - + 15.6%.
These sectors need clarification.
We will not consider construction as a driver at all now. The increase in industrial stocks in October is not a sign that Russians suddenly wanted to buy apartments en masse. vice versa. There are clear problems with demand. We will talk about it separately sometime.
But it was the story of the stock market that happened.
The LSR share, for example, rose by 33% (!) and became the driver of the entire sector.
At one point, the Moscow Stock Exchange was even forced to include a discreet auction for LSR shares - so vigorously the market decided to remember the construction. Even Smollett, with its well-known problems (debts, the nationalization of the Marino district), grew by 12.9%.
A combination of technical rebound, speculative buying and closing short positions worked. Simply put: the stock was sold for a long time, there were excess bets that it would fall, and then someone started buying - and the sellers discovered that it was more expensive to get out of the short than to get in. This is how the "flight" of companies on the stock exchange was born, which in reality continues to count the cost of loans.
And yes, the securities really fell much earlier. That "plane" lost 66% during the year. At some point a correction had to happen.
So - you can see this as an investment recommendation - you should not expect further growth in the sector for now. There are no fundamental factors, but the correction has already happened.
We don't recommend it.
But the electricity industry is a completely different story.