Russian stocks seen growing as global coronavirus worries fade

MOSCOW, Feb 12 (PRIME) -- The Russian stock market will likely open higher on Wednesday as the oil prices and U.S. stocks increased on Tuesday evening, partially due to a reduction of global concern about the spread of coronavirus, analysts said.

“The RTS can continue to increase today at the start of trade due to easing worries over the spread of coronavirus in China, and thanks to anticipation of the dividend season: the Russian companies have started to publish their financials for the last year, allowing investors to make dividend estimates,” Investment company Olma’s senior analyst Anton Startsev said.

Sergei Drozdov, analyst at investment company Finam, said that the Brent futures rose 1.65% on Tuesday to U.S. $54.28 per barrel of Brent amid signals from China that the spread of coronavirus had slowed down.

He said that the U.S. market rose to new maximums on Tuesday on Chairman of the Federal Reserve System (Fed) Jerome Powell’s optimism about the economic growth prospects and comment that the U.S. was carefully tracking the coronavirus epidemic.

Drozdov put the support level for the MOEX Russia Index at 3,070 and 3,050. The resistance notch is 3,110. The local support level for the RTS index stands at 1,510, and resistance at 1,560.

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