Russian stocks can grow on oil price stability, RUSAL report

MOSCOW, Nov 13 (PRIME) -- The Russian stock market will likely grow slightly at Monday opening supported by stability of oil prices, rising foreign markets and solid financials released by UC RUSAL, but anxiety about a U.S. key rate will not let this trend develop, analysts said.

“The external background gives no reasons for strong trends just yet. U.S. interest rates have kept a tendency to grow supported by expectations of toughening of monetary policies by the Federal Reserve System (Fed), which negatively affects demand for ruble assets (according to Bloomberg data, the market estimates the probability of a key rate increase by the Fed in December at more than 97%),” Anton Startsev, senior analyst at investment company Olma, said.

He said that RUSAL’s financial report for January–September released earlier on Monday can influence the Russian market positively.

Oleg Shagov, head of investment company Solid’s research department, said that the MICEX can slightly rise, opening at 2,170–2,175 as the Brent oil price remained above the U.S. $63.5 per barrel level.

Slightly growing U.S. stock market futures and premarket signaling a stock indices increase in Europe later in the day will support Russian securities, he said.

Russia will release gross domestic product (GDP) figures, and the MSCI Russia is expected to be rebalanced on Monday, Shagov said.

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