Russian stocks may moderately grow backed by oil prices

MOSCOW, Jun 14 (PRIME) -- The Russian stock market can open slightly higher and consolidate during the day thanks to an uncertain foreign background and expectations of a key rate cut by the central bank, analysts said on Friday.

“The MOEX Russia Index may consolidate at around 2,750… The central bank’s board of directors will have a meeting to decide on the monetary policy and can reduce the key interest rate by 0.25 percentage points… The situation on the financial market is favorable for the rate cut,” Georgy Vashchenko, head of investment company Freedom Finance’s department for trade operations on the Russian stock market said.

Investors are unlikely to react strongly and will not escape from local stocks as the U.S. Federal Reserve is also expected to decrease the rate, Vashchenko added.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, expects the MOEX Russia Index to open with a marginal rise of 0.2–0.3% at around 2,765 amid an uncertain global environment with the Brent crude price adding 0.9%, and Asian and U.S. benchmarks seen mixed.

Investors will also track decisions of annual general meetings of shareholders of oil company Rosneft, Novorossiysk Commercial Sea Port (NCSP), Rostelecom and power companies MOEK, MOESK and Unipro.

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