Russian stocks can keep on rising on better environ, growing oil

MOSCOW, May 29 (PRIME) -- The Russian stock market can show positive dynamics on Monday in light of an encouraging external environment including rising crude prices and decreasing geopolitical risks, analysts said.

“We expect that positive sentiments will persist on the Russian stock market thanks to an improving external background, including the oil price situation. As a result, purchases in local shares will prevail, and the MOEX Russia Index can make another step under the growth scenario to the target of 2,800–3,000,” senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said.

Zvarich sees the present sentiment on the global markets as positive. The main Asian indices are adding up to 1.1%, the core U.S. indices futures are rising by 0.3%, and the nearest Brent oil futures are growing by 0.7% to U.S. $77.5 per barrel.

The optimism stems from the news that an agreement on the future of the U.S. state debt has been reached, and the debt ceiling can be increased already on Wednesday, Zvarich said.

Alexei Golovinov, chief analyst at PSB Bank, also expects the MOEX Russia Index to test the level of 2,700.

Demand for gas giant Gazprom can be seen higher after re-election of Turkish President Recep Tayyip Erdogan as risks linked to the gas hub project in Turkey has almost disappeared, he added.

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