WEEKLY TOP GAINERS/LOSERS: 25.04.2018

Top Gainers – The World Market

1. Tullow Oil – the growth in stock prices of the oil and gas exploration company was due to a change in management and plans to invest $780 million in oil production. In 2017, Tullow Oil received a net profit after 3 years of losses and is going to pay dividends. Its significant corporate information will be released only at the end of June.

2. Mitsui OSK Lines – stock prices of the transport company rose after US authorities announced the possibility of negotiations with Japanese steel and aluminum manufacturers. Earlier, Donald Trump imposed prohibitive import duties on these metals in the United States. This led to the contraction of maritime shipping market and collapse of Japan's transport sector. Despite a weekly growth, Mitsui OSK Lines stocks have been "in the red" by 8% since the beginning of the year. On April 27, 2018, the company will publish a forecast for the current year.

Top Losers – The World Market

1. Philip Morris International – stock prices of the American cigarette and tobacco manufacturing company fell after the publication of earnings report for the 1st quarter of 2018. The growth in its revenue and profit was much less than preliminary forecasts. Meanwhile, market participants expected that the company would significantly improve its performance due to the weakening of the dollar and reduction of the tax burden. The annual shareholders meeting of Philip Morris International will be held on May 9, 2018.

2. Altria Group – stock prices of the holding fell together with other tobacco companies after a weak earnings report by Philip Morris International. Cigarette sales account for 87% of revenue of Altria Group. The holding will publish its earnings report for the first quarter on April 26, 2018. If it turns out to be good, prices can correct upward.

Top Gainers – Foreign Exchange Market (Forex)

1. USDMXN, EURMXN The Mexican peso collapsed against the US dollar and the euro (on the chart it looks like a growth). The reasons for this were the emerging difficulties in the negotiations on the extension of the North American Free Trade Agreement (NAFTA). In addition, recent public opinion polls recorded an increase in support for the left candidate and former mayor of Mexico City at the upcoming presidential elections in July. Investors fear that he can abolish a number of economic reforms and increase social support of the population. Among economic factors, let us note a stronger than expected reduction in inflation in the 1st half of April. The same trend was expected in March. All these factors increase the likelihood of a rate cut by the Bank of Mexico, which is currently 7.5%.

2. USDZAR - South African rand weakened against the US dollar amid a decline in inflation in March. This increases the likelihood of a rate cut by the Reserve Bank of South Africa. Now it is 6.5%.

Top Losers - Foreign Exchange Market (Forex)

1. NZDUSD The New Zealand dollar significantly weakened against the US dollar amid a decline in inflation in New Zealand according to the results of the 1st quarter of 2018. Market participants fear that this may lead to rate cuts by the Reserve Bank of New Zealand.

2. GBPUSD - The decrease in inflation for March, which exceeded forecasts, also contributed to the weakening of the British pound. This reduces the probability of a rate hike by the Bank of England at the next meeting on May 10. Another negative factor was the decrease in the UK retail sales in March.