Russian stocks can rise on foreign mkt optimism over US–China talks

MOSCOW, Mar 29 (PRIME) -- The Russian stock market will likely edge up at opening on Friday, following foreign markets in their optimism over the U.S.–China trade negotiations that restarted on Thursday, analysts said.

“The softening of the external background allows us to expect a certain increase of the RTS Index at the start of trade,” Investment company Olma’s senior analyst Anton Startsev said.

Vadim Kravchuk, analyst at investment company Solid, said that the background for the start of the trade in Russia is positive as the Chinese indices added up to 3% on the back of a start of trade negotiations with the U.S.

According to media reports, Beijing is ready to make some trade-offs and even agrees to abolish forced cession of technologies for companies setting foot on the Chinese market. The U.S. can repeal some of the duties, keeping the rest for a longer term.

According to Startsev, the RTS will likely consolidate close to the 1,200 level.

Senior analyst of Promsvyazbank’s economic and industrial research department Roman Antonov said that the MOEX Russia index may continue to rise to 2,500–2,520.

Alor Broker analyst Alexei Antonov said that closer to the evening, the Russian investors may want to take profit as investor worries about U.S. President Donald Trump telling Moscow to “get out” of Venezuela as it means the emergence of another crisis zone in the Russian–U.S. relations.

Mikhail Poddubsky, chief analyst at Promsvyazbank, said that presidential elections in Ukraine in this weekend will add to the pressure on Russian assets, but this pressure will not be a major trend.

The U.K. parliament will vote for an agreement with the E.U. on Brexit later on Friday. If the agreement is not chosen, the parliamentarians will have to choose either uncontrolled quitting from the E.U., or postponement of Brexit for a long term.

Rosseti and Transneft will publish annual financials under International Financial Reporting Standards (IFRS), which, according to Kravchuk, will provide important insights to the market.

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