Russian stocks may rise on strong crude, domestic positive mood

MOSCOW, May 7 (PRIME) -- Russian stocks may edge up on Monday and hit new local highs backed by strong crude at around U.S. $75 per barrel, analysts said.

“The inauguration of Russia’s president on Monday will become the main even of the week. Not so much the inauguration itself as a government reshuffle. It is difficult to predict the reshuffles, but investors will react to them for sure,” Andrei Vernikov, deputy CEO for investment analysis of Zerich Capital Management, said.

Viktor Vesyolov, a Globexbank analyst, said that investors may take a wait-and-see approach as new accusations from the U.S. Congress may follow after the inauguration.

Analyst of investment company Region Viktor Vaisberg said that the market may be supported by high crude prices as investors are waiting for U.S. President Donald Trump’s decision on a possible withdrawal from the 2015 Iran nuclear deal.

Promsvyazbank analyst Mikhail Poddubsky said that the MOEX Russia Index may try to break through a 2,300 mark if there is no negative news.

Russian traders will also follow IFRS financial results for January–March to be released by Magnitogorsk Iron and Steel Works (MMK).

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