Russian stocks can rise on ruble dynamics, oil prices

MOSCOW, May 23 (PRIME) -- The Russian stock market is likely to open with an increase on Tuesday, because the ruble exchange rate dynamics and oil prices should provide support to the national market, analysts said.

BitRiver’s financial analyst Vladislav Antonov said that a weakness of the ruble and a recovery of oil prices helped the MOEX Russia Index to grow slightly on Monday.

“The ruble is in the red zone during the morning session, therefore the MOEX Russia Index will open with an increase (on Tuesday). The level of 2,655 acts as a resistance line, and the buyers are aiming at breaking the level. A strengthening of the ruble prior to the peak of tax payments (on May 29) could limit the buyers and cause a downward correction on the stock market,” Antonov said.

Yaroslav Kabakov, director for strategy at investment company Finam, said that investors should expect the Russian stock market to show a positive dynamics at the start of the Tuesday trade.

“The Russian market can show surprises, because the mid-term upward trend has not been broken, and it may potentially show a growth of the MOEX Russia Index to 2,700,” he said.

Russian investors would focus on a meeting of the board of directors of gas giant Gazprom, during which the directors will discuss dividends for 2022. The market fears that the company may reject dividends taking into account the problems with exports of natural gas to Europe. Such decision will displease investors and drag the shares of Gazprom, other heavyweight companies, and the entire market down, he said.

End