Russian stocks seen recovering after decline on key rate hike

MOSCOW, Oct 25 (PRIME) -- The Russian stock market will likely open higher on Monday in correction after a loss of October 22 when the central bank raised the key rate, analysts said.

"I expect our market to open with an increase. The RTS has been in the bull zone since the end of August. The situation in Asia is good. Troubled Chinese developer China Evergrande Group has prevented a default by paying a coupon on the bonds," Andrei Vernikov of Univer Capital said.

According to Vernikov, the decision of the Russian central bank to raise the key rate to 7.5% and a pledge to consider raising it even more can prompt investors to shift to the bank deposits.

Alor Broker senior analyst Alexei Kochetkov said that the market overreacted to the central bank decision and would probably partially recover after the loss on Monday.

The U.S. stock market futures increased by about 0.25%, industrial and precious metals grew, oil added 0.8%, rising above U.S. $85, which will support the market, Kochetkov said. He added that the oil and gas sector would likely rise.

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