Russian stocks may rise as external background favorable

MOSCOW, Nov 14 (PRIME) -- Russian stocks are likely to open slightly higher on Monday on favorable external background, analysts said.

“Today the external background is moderately positive prior to the opening of the Russian stock market…Futures for the U.S. stock indices are growing, and the dynamics of Asian floors also support purchases, as the Nikkei225 is rising 1.7%, and Shanghai Composite is growing 0.5%,” Bogdan Zvarich, an analyst at investment holding Finam, said.

Asian markets were supported by good data on Japan’s gross domestic product, which grew 0.5% in July–September against an expected 0.2% increase, Zvarich added.

Oleg Shagov, head of investment company Solid’s research department, said that the Russian stock market may edge up at opening with the MICEX index close to 2,040 and may rise to 2,050 during the day as the external background is positive.

But investment company Olma’s senior analyst Anton Startsev said that the market may stabilize at the beginning of trading, while a downward correction of the RTS index is still possible.

“The trend for growth of yield on U.S. treasuries and the strengthening of the U.S. dollar are still characterizing the external background, and they both are an unfavorable factor for demand at emerging markets,” Startsev said.

Among corporate events that may have an influence on the market, Shagov listed publication of financial results of the country’s second largest bank VTB Bank under International Financial Reporting Standards and announcement of retailer Dixy Group’s operating results. The MSCI is also to announce semiannual rebalancing of its indices, Shagov added.

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