Russian stocks to continue rising on favorable environment

MOSCOW, Oct 4 (PRIME) -- The Russian stocks are likely to continue growing on Tuesday as the favorable external environment and higher oil prices still support the national market, analysts said.

“If we speak about the foreign markets mood on Tuesday morning, we can say that it is positive. The leading Asian floors gained up to 2.8%, and the futures for the main U.S. indices rose by up to 1%. The closest futures for the Brent oil added 0.4% to U.S. $89.2 per barrel,” Bogdan Zvarich, senior analyst at financial platform Banki.ru, said.

The MOEX Russia Index may continue its correctional growth following the Monday sentiment, and improvements in the external background and higher demand for risky assets in the world should support it. As a result, the index may try to climb above the closest resistance line of 2,050, Zvarich said.

“The sanction expectations are getting weaker. The E.U. rejected the idea of banning imports of Russian diamonds triggering active growth in ALROSA (on Monday). One should not rule out that the oil exports restrictions will be discarded as well, which will be welcomed by the market. It is difficult to forecast trade dynamics, but growth may continue,” Georgy Vashchenko, deputy director of Freedom Finance Global’s research department, said.

Otkritie Reseach leading analyst Andrei Kochetkov also said the Reserve Bank of Australia provided additional support by raising its rates by a smaller than expected margin, he said.

“It is possible that the Russian market will continue its growth attempts, albeit not as aggressive as yesterday,” Kochetkov said.

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