Russian stocks to consolidate on strong crude, rising floors

MOSCOW, Aug 28 (PRIME) -- The Russian stock market may consolidate on Tuesday at the levels reached earlier backed by a favorable global background, but discouraged by a lack of large buyers on the market, analysts said.

“Optimism persists on the Russian stock market although modest trade volumes mark a lack of large buyers. In the medium term, the prospect of further sanctions will prevent a rally. The MOEX Russia Index is likely to consolidate around a 2,300-2,330 range reached yesterday,” analyst at Freedom Finance Anastasia Sosnova said.

Sosnova added that the external environment looks positive with the U.S. indices seen near all-time highs on the back of a trade agreement between the U.S. and Mexico, Asian benchmarks trading higher, and investors demonstrating a high risk appetite.

The Brent oil price is consolidating over U.S. $76 per barrel and may soon attempt to break through a $80 per barrel mark, the expert added.

Olma senior analyst Anton Startsev said the RTS index’s upward dynamics may slow down in the short term, but are unlikely to reverse.

The market will also be driven by releases of International Financial Reporting Standards (IFRS) financial reports for April–June and January–June by power generating company RusHydro, diamond mining giant ALROSA, multi-industry holding Sistema, oil company Tatneft, Bank Saint Petersburg, rail cargo operator Globaltrans, Wholesale Generating Company-2 (WGC-2), and coal producer Raspadskaya.

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