Russian stocks may slightly grow on eased geopolitical tensions

MOSCOW, Sep 5 (PRIME) -- Russian stocks may slightly increase at the opening on Tuesday amid a neutral background, but growth of the indices will be suppressed by risks of geopolitical tensions and falling oil prices, analysts said.

“We expect the Russian stock market to open at around 2,005 points at the MICEX, assuming that this stock indicator will continue fluctuations around the current levels amid reduced investor activity caused by risks of escalation of geopolitical tensions amid reports that North Korea is preparing for new launches of an inter-continental ballistic missile,” Oleg Shagov, head of the investment company Solid’s research department, said. On Monday, the MICEX closed at 2,003.32.

The ultimate influence of key external factors that have a significant impact on the Russian financial market is close to neutral today, the analyst said.

Brent oil futures fell to the level of U.S. $52.2 per barrel and remain under pressure amid reports that the U.S. oil production is restoring after a hurricane.

The leading U.S. stock index futures are not changing much, while main Asian stock indicators are not showing single dynamics.

Olma senior analyst Anton Startsev believes that some rebound at the RTS index is possible at the start of trading on Tuesday as concerns connected with North Korea have eased, but negative influence of the geopolitical factor on investor activity still remains, that’s why the RTS is unlikely to consolidate over 1,100 points.

Among events that can impact the Russian stock market, investors will follow publication of financial results of Global Ports and wait for a conference call of Tatneft and the Eastern Economic Forum that will open in Vladivostok on Wednesday, Shagov said.

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