Russian stocks may rise backed by oil price growth, global floors

MOSCOW, Nov 24 (PRIME) -- The Russian stock market may edge up in the morning on Tuesday thanks to advancing crude prices and positivity on the U.S. markets, but correction may begin soon, analysts said.

“A fall (of the Russian indices) from the psychologically important levels (seen on Monday) may be a worrying signal for the buyers and may become a start of correction. But if the external environment remains positive, investors will just have no reasons for sales. The guidance for the MOEX Russia Index for Tuesday is 3,020–3,110,” Veles Broker analyst Yelena Kozhukhova said.

Alor Broker analyst Alexei Antonov said that crude futures added another 1% in the morning, but the rise is unlikely to last long and correction may start soon to drag Russian oil stocks downwards.

He added that the Russian stock market may open higher thanks to the support of oil and the major U.S. benchmarks futures seen growing around 0.8%.

Olma senior analyst Anton Startsev expects the RTS index to edge up at the beginning of the trading session following foreign benchmarks and energy futures.

“Reports on the progress in vaccines trials and the start of the formal process of transfer of power from the current administration to the newly elected U.S. President Joe Biden give reasons for recovery of investors’ readiness for risk taking and inflow of the capital to emerging markets,” he said.

The local market will also be driven by releases of IFRS financial reports for July–September by oil company Lukoil and Wholesale Generating Company-2 (WGC-2), part of Gazprom Energoholding.

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