Russian stocks may grow as Tillerson’s visit to Moscow hopeful

MOSCOW, Apr 13 (PRIME) -- Russian stocks may grow on Thursday morning as a visit of U.S. Secretary of State Rex Tillerson to Moscow provided some hope for improvement of the U.S.–Russia relations, analysts said.

“We expect the Russian stock market to open higher in spite of a fall of oil prices and mostly negative dynamics of world trading floors. Purchases will be supported by results of yesterday’s meeting between Tillerson, Russian Foreign Minister Sergei Lavrov and President Vladimir Putin, which is softening of geopolitical tensions in itself,” Bogdan Zvarich, an analyst at investment company Finam, said.

Lavrov described the talks as “frank and comprehensive,” while Tillerson called them productive and stressed he was looking forward to future meetings. Lavrov also said that he was sure that his meeting with Tillerson, as well as Tillerson’s meeting with Putin, were “not in vain,” expressing hope that contacts between the Russian government and the U.S. administration will continue.

Zvarich said that results of the meeting will allow demand for Russian securities to prevail.

“Today contraction of the RTS index is possible at the beginning of the trade…Yesterday First Deputy Prime Minister Igor Shuvalov changed his rhetoric about state companies paying 50% of the IFRS net profit in dividends several times, and expressed hope that significant payments may enhance investment attractiveness of state companies,” Anton Manayev, head of the trade operations department at investment company Olma, said.

Oleg Shagov, head of investment company Solid’s research department, said that the ultimate influence of the key external factors that have a significant impact on the market is close to neutral at the beginning of the day. The Brent oil price is fluctuating slightly below a U.S. $56 per barrel mark, the U.S. stock index futures are changing insignificantly, and the Asian floors are showing not common dynamics.

“We expect the Russian stock market to open close to 1,950 of the MICEX index and suppose that the background and activity of investors will not be tense today as Europe and the U.S. are preparing for a long Easter weekend,” Shagov said.

Shagov also said that among corporate events that may have an impact on the local market are publications of operating results by steelmaker Severstal and real estate developers LSR Group and Etalon, and also a dividend recommendation by the board of directors of titanium giant VSMPO-Avisma.

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