Russian stocks rise on optimism ahead of US reporting season

MOSCOW, Jul 12 (PRIME) -- The Russian stock market grew on Monday supported by the optimistic mood on the foreign trading floors and upbeat expectations ahead of an upcoming season of corporate reports in the U.S., analysts said.

The MOEX Russia Index rose 0.53% to 3,875.61 and the RTS increased 0.32% to 1,640.22.

Alexander Osin, head of Freedom Finance’s department for trade operations on the Russian stock market, said that the market poll shows that the U.S. leading banks will demonstrate lower profits.

“But the forecasts may be overly pessimistic, because the sector traditionally benefits from the monetary stimulation measures. For instance, the net profits of J.P. Morgan and Goldman Sachs outperformed the consensus forecast by 45% and 82%, respectively, in the first quarter,” he said.

Dmitry Bedenkov, head of the research department of RUSS-INVEST, said that the bulk of the leading global stock indices rose with the S&P 500 setting a new record of 4,378, and the NASDAQ being very close to a historic record. High expectations from U.S. corporate reports, which are to start coming on Tuesday, support the markets, he said.

Artemiy Shamshukov, analyst at investment company Finam, said that a slight improvement in the coronavirus situation in Russia also supported the national market. According to Moscow’s Mayor Sergei Sobyanin, the capital has passed the peak of new cases of the COVID-19, Shamshukov said.

Shamshukov also said that securities of TCS Group, which comprises Tinkoff Bank and Tinkoff Insurance, grew by 1.91% to 6,751.80 rubles on the launch of a green fund, which helps clients invest in Tesla and Li Auto.

Mobile operator MTS gained 0.97% to 322.45 rubles on the plans to digitalize developer Dom-Stroy’s residential compound in Novosibirsk under a pilot smart house project, he said.

Below are the MOEX Russia Index’ five most active stocks on Monday:

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Gazprom	+0.43	296.50	12.116
Sberbank	+0.67	305.60	7.178
Norilsk Nickel	+1.42	25132.00	5.156
ALROSA	+1.59	133.07	3.459
Lukoil	-1.08	6583.00	3.360

(74.4675 rubles – U.S. $1)

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