Russian stocks to grow as oil price at $57, US sanctions can ease

MOSCOW, Feb 6 (PRIME) -- The Russian stock market may increase at Monday opening because the oil price has reached a U.S. $57 per barrel level, and statements by U.S. officials make investors hope that sanctions against Russia can be eased in the near future, analysts said.

“The ultimate influence of the key factors that provide a significant impact on behavior of the Russian stock market is moderately positive today in the start of the day in our estimates,” Oleg Shagov, head of investment company Solid’s research department, said.

Brent futures for April are nudging the $57 per barrel level. U.S. stocks futures are little changed, while Asian markets are growing. The European premarket signals an opening with marginal changes, all these factors will contribute to a positive opening in Russia, Shagov said.

Anton Manayev, head of investment company Olma’s trade relations department, said that a statement by U.S. Vice President Mike Pence regarding possible abolishment of the anti-Russia sanctions in a few months will most probably be an important factor boosting attractiveness of Russian assets.

Scaling back of the U.S. Dodd Frank Act can possibly allow U.S. institutional investors to raise longs in raw materials and shares, Manayev said.

Shagov said the MICEX is likely to open at 2,225–2,230. An oil price increase can add to optimism on the market.

Aeroflot will publish financial results for 2016 under Russian Accounting Standards (RAS), which, according to Shagov, is expected to define trends in some securities.

Andrei Kochetkov, an analyst at Otkritie Broker, said that another important event is closing of Mechel’s shareholder register for a meeting.

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