Russian stocks seen rebounding on U.S., China economic news

MOSCOW, Oct 19 (PRIME) -- The oversold Russian stock market will likely increase on Monday in the morning propelled by healthy economic statistics from China and market hopes of imminent U.S. economic stimulation measures approval, analysts said.

"The external background for the domestic market is positive -- the futures for the U.S. and European indices rise at the start of the day, positive moods also prevail on the stock markets of the Asian region,” Finam analyst Zarina Saidova said.

“The macroeconomic data published by China became the reason for optimism -- the gross domestic product (GDP) rose by 4.9% on the year in the third quarter and industrial output expanded."

A certain increase of the RTS index is possible at the start of trade as the market welcomed a statement by the speaker of the U.S. House of Representatives signaling that a two-day deadline was set to agree on the measures for U.S. economy stimulation, Olma senior analyst Anton Startsev said.

Promsvyazbank analyst Roman Antonov said that the Russian market is oversold because the stocks fell on October 16, while the American indices grew. The weakness of the Russian market can be explained by continuing flight of non-residents.

He said that the oil prices are still under pressure after Baker Hughes said there was a surge in the number of drilling rigs by 12. By the opening of the Russian market, Brent erased most of the losses and traded at U.S. $42.88 as of 9:22 a.m., Moscow time.

Antonov said that Sberbank, as one of the most undervalued securities, can lead the market. Norilsk Nickel can continue to be the stronghold of the market.

Yandex and Sistema will likely discontinue falling after failed negotiations with Tinkoff Group because nothing bad for the companies has happened, Antonov said.

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