Russian stocks can grow to bounce back from previous fall

MOSCOW, Oct 29 (PRIME) -- The Russian stock market can edge up at the opening on Thursday to bounce back from strong correction seen earlier as overreaction to stricter global anti-pandemic measures, analysts said.

“The external background ahead of the Moscow Exchange’s opening does not look so desperate yet. Most Asian markets decreased at their opening following yesterday’s slide of the U.S. market, but then bounced back from the lows,” investment company Finam analyst Alexei Kalachyov said.

“The ruble, oil and gold are rebounding, and the major U.S. indices futures are adding over 1%. All these factors point to a higher opening of the Russian market.”

Olma senior analyst Anton Startsev said that correction of the RTS index may stop at the beginning of the trading session as the markets seems to have overreacted to stricter anti-pandemic measures in Europe.

At the same time, macroeconomic uncertainty stays really high, and rising global volatility strengthens risks of new waves of sales in the short-term, he added.

The market will also be driven by releases of financial reports for July–September by Amsterdam-based VEON, the sole owner of Russian mobile operator VimpelCom, top bank Sberbank, hydropower giant RusHydro and grocery retailer Magnit, as well as operating reports by U.K.-based mining giant Evraz, which operates mainly in Russia, and Magnit.

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