Russian stocks seen recovering on oil price increase

MOSCOW, Jan 20 (PRIME) -- The Russian stock market will likely correct upwards at the start of Friday’s trade as the oil prices resumed growth, analysts said.

"The external background for the start of trade in Russia is positive. Oil managed to rise yesterday in the evening, and the growth continued during the Friday trade,” Andrei Kochetkov, leading analyst for global research at Otkritie Research, said.

“The authorities of China said that the most difficult period of fighting against the coronavirus was over. Most of the Asian markets increased, hoping for an upcoming revival of the Chinese economy."

The oil prices resumed their growth sinking on Thursday, as the market focused on an expected rise of consumption in China and an output cut in Russia, the analyst said. The Russian market will remain concerned with the ban on Russian oil product imports to the E.U. starting from February, he said.

Algo Capital senior risk manager Vitaly Manzhos said that the oversold Russian market will likely correct upwards, as the U.S. stock market futures grew by 0.4%.

Confirmation of a possibility of peaceful settlement on price deals between Severstal, Novolipetsk Steel (NLMK) and Magnitogorsk Iron and Steel Works (MMK), and the antitrust by the authority may push the Russian market at large higher, according to Kochetkov.

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