Russian stocks may rise at opening as foreign bourses grow

MOSCOW, Jun 30 (PRIME) – The Russian stocks are likely to open higher on Tuesday as the foreign bourses priced better economic statistics, analysts said.

“The RTS Index may grow at the beginning of trade today because we may say that the external background has improved following the release of strong pending housing sales in the U.S. and business activity in China, where the PMI index outperformed forecasts,” investment company Olma’s senior analyst Anton Startsev said.

The U.S. stock indices grew by 1.2–2.3% on Monday, and futures for the indices stay in the green zone on Tuesday morning. The Asian floors also grow, Startsev said.

Yelena Kozhukhova, analyst at Veles Capital, said that the market mood at all western bourses improved late on Monday. The U.S. stock indices grew as the growth of new coronavirus cases in the country slowed down last weekend and after industry regulator permitted Boeing to carry out test flights of a 737 MAX plane.

The European bourses followed the U.S. in the evening and grew after Germany said its consumer price index growth accelerated to 0.6%, above market expectations of 0.3%, Kozhukhova said.

But Vitaly Manzhos, senior risk manager at investment company Algo Capital, said that the background for the Russian market was mixed at the beginning of Tuesday as the oil prices fell in correction after a Monday rise, meaning the Russian market may open almost flat.

The Brent oil price lost 0.50% to U.S. $41.50 per barrel as of 9.03 a.m. Moscow time, according to the ICE exchange.

“We expect the MOEX Russia Index to open with a moderate fluctuation of up to 0.5% in the range of 2,755–2,785. The levels of 2,750 and 2,740 will again act as the closest support level, while 2,790 and 2,800 will become the resistance. After opening with moderate fluctuation, the MOEX Russia Index is very likely to switch into consolidation thanks to a mixed background,” Manzhos said.

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