Russian stocks may rise on recovering demand for risky assets

MOSCOW, Aug 13 (PRIME) – The Russian stocks may firm at opening on Thursday as the market hopes for recovering interest to the developing markets, analysts said.

“The external background prior to the start of trade looks relatively favorable -- suspension of U.S. debt securities’ yield and the U.S. dollar’s DXY index increase imply the possibility of recovering demand on the emerging markets,” Investment company Olma’s senior analyst Anton Startsev said.

The U.S. stock indices grew by 1.0–2.1% on Wednesday, and the futures for the indices rose on Thursday morning. The European bourses closed higher and the Asian floors show mixed dynamics this morning, he said.

“At the same time, uncertainty about the scale of support measures in the U.S., trade disputes between China and the U.S., and possible restrictions in the pandemic prevent consistent growth of the stock markets,” Startsev said.

Yelena Kozhukhova, analyst at Veles Capital, said that the MOEX Russia Index rose to its high since February on Wednesday, while the RTS Index eased, but was a bit short from reaching the June high, but still looks ready to climb above it. The ruble-denominated index is slightly overbought, she said.

“Risky assets look like they are ready to go higher, and the fall on the gold and silver markets also stopped. Hopes outweigh uncertainty and macroeconomic risks, while investors are still looking for positive signals,” Kozhukhova said.

She also said that rebalancing of the MSCI Russia index is likely to have an impact on trade in some shares after the shares of internet company Yandex were included into the index.

But Alor Broker’s senior analyst Alexei Antonov said that the Russian market may open flat.

“The external background may be characterized as neutral, and the market in general is significantly overbought in the short term. This is why it is only logical if the Russian ‘bulls’ take a day off today,” Antonov said.

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