Russian stocks can grow early on respite from sanctions risk

MOSCOW, Apr 26 (PRIME) -- The Russian stock market will likely increase on Monday at the start of the trading session as the sanctions risks have temporarily eased, analysts said.

"The statement of the Czech Republic president that the intelligence had two lines of enquiry into the explosion of the notorious military supplies warehouse in 2014 -- malpractices of the staff and a terrorist attack. This means that there is no proof of Russia's involvement in the incident," Alor Broker analyst Alexei Antonov said.

"This means that the ruble assets have been spared of sanctions and political risks for some time. But there is still no certainty that the MOEX Russia Index will rush to catch up with the U.S., which is far ahead."

Antonov added that the external background for the start of the session is still positive.

The oil prices fell by about 0.5% and can consolidate below U.S. $65, which, according to Antonov, will drive the Russian market down, while the American stocks, precious and ferrous metals grow slightly offsetting the negative effect, he said.

Senior analyst at Promsvyazbank Bogdan Zvarich said that the investor risk appetite has increased in the wake of a U.S. Treasuries' yield correction. A forthcoming meeting of the Federal Reserve System (Fed) may strengthen the dynamics, as the Fed can pledge to keep mild monetary policies.

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