Russian stocks likely to continue recovery from January’s losses

MOSCOW, Jan 31 (PRIME) -- The Russian stock market is demonstrating positive dynamics during the morning session and may continue to edge up on Monday to recover from January’s previous losses in light of a positive foreign background with the Brent oil price approaching U.S. $90 per barrel, analysts said.

“The bounce-back of ruble-denominated stocks in the last morning of the ‘Black January’ continues thanks to a positive foreign background,” Alor Broker analyst Alexei Antonov said.

The main U.S. indices futures are adding 0.25%, and crude has increased by over 1% trying to break through the $90 per barrel mark, he also said, adding that the Russian blue chips including gas giant Gazprom, top bank Sberbank and oil major Rosneft are the leaders of the morning advance.

Antonov also said that the entire environment of the Russian stock market began to reverse in the middle of the past week, the market seems to have been rebounding while investors perceive almost all the news positively.

The technical picture can improve if the MOEX Russian Index is able to consolidate above the psychologically important level of 3,500, which it has failed to do so far, he added.

PSB Bank senior analyst Yegor Zhilnikov said that the foreign background looks positive for strengthening of the ruble as well.

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