Russian stocks may rise at opening as coronavirus worries subside

MOSCOW, Feb 11 (PRIME) – The Russian stocks may grow at the beginning of trade on Tuesday as worries about the coronavirus outbreak in China are fading, while the foreign bourses and oil prices rise, analysts said.

“Today the RTS Index may firm at the beginning of trade, with technical analysis pointing to support close to 1,500. Worries about the impact of the coronavirus on the economy are subsiding as more and more people are recovering from the disease, while the general situation at global stock markets does not allow us to speak about a restoration of an upward trend,” investment company Olma’s senior analyst Anton Startsev said.

The background for the Russian market is positive as the futures for U.S. stock indices rise, and the Asian floors are in the green as well.

Alexei Antonov, analyst at Alor Broker, also said that the positive impact of the external background may push the MOEX Russia Index 0.5% up at the opening. The level of 3,050, where the index finished the year of 2019, supports it, he said.

“The Russian stock market looked worse than the Western floors yesterday losing 0.8% in the day. Cheap oil once again became the major weakness of the market, as it prompts foreigners to withdraw from the ruble assets. However, we closed yesterday at the U.S. market intraday lows, but it grew significantly after our closure,” Antonov said.

“Even the oil price managed to turn upward from U.S. $53 and it is now gaining about 1.3% trying to keep at above $54, even though there is no reason to speak about a change or suspension of a downward trend.”

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