Russian stocks seen growing on oil price, foreign market rise

MOSCOW, Feb 5 (PRIME) -- The Russian stock market will likely continue to grow on Friday at the start of the session as the sanction risk faded, and oil prices and foreign markets are demonstrating growth, analysts said.

"The external background today in the morning favors continuation of purchases: the American futures rise by a quarter of percent. Oil adds half a percent, rising above U.S. $59 per barrel. Industrial and precious metals increase," Alor Broker senior analyst Alexei Antonov said.

He said that the Russian market started to rise on Thursday evening, as investors knew that the sanctions bill against Russia submitted to the U.S. Congress contains only measures against several officials for human rights violation.

Finam analyst Igor Dodonov said that the external background for the start of the Russian session is positive as foreign markets mostly rise in the wake of a release of good statistics, solid corporate reports and hopes for a fast adoption of the U.S. economic incentive plan.

Dodonov said that the COVID-19 situation is improving slowly. 

Antonov said that the oil prices are overheated, as the farther futures are cheaper than the closer ones, and will stop being support for the Russian stock market soon. The analyst added that the U.S. dollar is strengthening, which might trigger a downward correction on the U.S. stock market, and an even stronger correction in Russia.

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