Russian stock market may rise at open on favorable environment
MOSCOW, Jan 21 (PRIME) -- The Russian stock market will likely edge up at Tuesday’s opening, continuing the previous day’s trend, with favorable background and climbing prices for oil, the backbone of the country’s economy, supporting prices, analysts said.
“Foreign background prior to the trade opening in Russia is positive today. From the beginning, the MICEX index may gain up to 0.3–0.5% and again reach an important range of 1,500–1,520, in which we have witnessed multiple sales in previous months,” ITinvest-Prospekt analyst Vasily Oleinik said in a note.
The MICEX index rose 0.57% to 1,495.36 points at Monday’s closure.
The Brent oil futures for March 14 rose 0.23% to U.S. $106.51 per barrel as of 9 a.m. Moscow time.
Dmitry Kulakov, director of Olma’s shares department, also expects indices to rise at opening. “Interventions of the Chinese central bank have contributed to the stabilization on the country’s money market which may have a favorable impact on demand on the stock market,” he said.
Oleinik said natural gas giant Gazprom, which became the growth leader on Monday ahead of a meeting with China’s CNPC, still has growth potential.
“The event will take place on Wednesday and may result in signing of long-term contracts of gas supplies to China. If the deal is signed, Gazprom will get a good impetus for growing,” Oleinik said.
Gazprom jumped 1.84% yesterday to 139.75 rubles on the Moscow Exchange.
“For a long-term investment, it’s worth waiting for a 5–7% correction on the U.S. floors and only after that assess the situation on the Russian market. The upcoming Olympics factor will certainly influence the mood on the stock market, but it’s practically impossible to assess its scale,” Oleinik said.
Sochi, a Russian southern resort city, will host the Winter Olympics on February 7–23.
Oleinik expects a moderately “bearish” trend on the U.S. floors until the Federal Open Market Committee’s meeting on January 28. “The strongest moves, both on the Russian and the U.S. markets, will start only in February,” he said.
(33.6429 rubles – U.S. $1)
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