Russian stocks may rise backed by positive foreign background

MOSCOW, Oct 22 (PRIME) -- The Russian stock market may edge up at opening on Monday in an attempt to rebound from October 19’s losses thanks to a generally positive global background, analysts said.

“We expect the MOEX Russia Index to open modestly higher by around 0.2–0.3% to 2,350… In the first minutes of trade the benchmark will price in a moderate enhancement of the external background. Later in the day, it may grow to 2,360–2,370 thanks to a favorable global sentiment and a considerable technical potential for Sberbank’s bounce back,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

Russia’s biggest bank Sberbank fell almost 4% on October 19 on rumors of its possible purchase of up to 30% of Internet giant Yandex.

Olma senior analyst Anton Startsev said that the RTS index may also grow due to an improving environment on Asian and European markets.

Manzhos added that the U.S. indices futures are seem higher and the Brent oil price added 0.3% to over U.S. $80 per barrel so the external background it relatively positive.

Investors in Russia are also likely to follow a slew of financial and operating results releases for July–September and January–September from grocery retailer Magnit, power company RusHydro, diamond miner ALROSA, and agricultural company Rusagro.

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