Russian stocks may rise despite political tensions, bearish market

MOSCOW, Nov 16 (PRIME) -- The Russian stock market may edge up at opening on Tuesday shrugging off the current geopolitical tensions and the bearish market sentiment, analysts said.

The external background is benign for trading in Russia as the Asian stocks mostly rise as of morning in Moscow, Alexander Arutyunyan of RUSS-Invest said.

Andrei Kochetkov of Otkritie Research called the background neutral, as the commodity contracts and the Asian markets trade mixed. In China, hopes are pinned on improved relations with Washington, and in Japan, investors react to corporate reports.

According to Igor Galaktionov, analyst at BCS Investment Group, geopolitics make investor wary with the focus today on updated oil demand estimates for 2021 and 2022, Galaktionov said.

A fairly strong morning increase in the value of oil futures creates conditions for the opening of the Moscow Exchange (MOEX) Index with a more or less large increase, Vitaly Manzhos, chief analyst at Algo Capital, said.

Manzhos expects the MOEX Index to open with an increase of 0.1–0.5%, in the range of 4,140–4,155.

At the opening, the Index will rise on positive oil market sentiment. Later in the day, publication of the key statistic indicators in Europe and the U.S. will be in the limelight with the most important of them being the U.S. October retail sales to be published at 4.30 p.m., Moscow time, and the U.S. October industrial production and capacity utilization to be released at 5:15 p.m.

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