Russian stocks may rise at opening on weak ruble

MOSCOW, Aug 8 (PRIME) -- The Russian stock market is likely to continue its upward dynamics at opening on Tuesday as the weak ruble prevents the correction, analysts said.

“The ruble slightly recovered after several days of decline. Although the correction is overdue, the weakness of the ruble prevents the market from correcting. The strategic target for investors is 3,435 points. As long as the index is trading above 2,950 points, buyers will remain active on the shares included in the index,” BitRiver’s financial analyst Vladislav Antonov said.

One of the reasons for the weakening of the ruble is the continued reduction of foreign currency and increased demand from importers due to the deterioration of foreign trade balance and settlements for exports in rubles, the analyst said.

According to Alexei Antonov, head of Alor Broker’s investment consulting department, the Russian stock market is completing its upward rally and is entering the high turbulence zone. The strong correction, by 7–10%, is probable, but not necessary, he also said.

The market may well eliminate technically overbought shares and gain strength for a new breakout, but any negativity will provoke profit fixing, Antonov also said.

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