Russian stocks to grow on ruble weakening, Putin–Obama meeting

MOSCOW, Sep 25 (PRIME) -- Russia’s MICEX stock market index will increase on Friday in the morning on the back of traders’ hopes related to a forthcoming meeting between Russian President Vladimir Putin and his U.S. counterpart Barack Obama, while the RTS will react to weakening of the ruble, analysts said.

“The improvement of the external background, the planned meeting between the presidents of Russia and the U.S. and the Friday effect will, in my opinion, create preconditions for a start of a rebound of the MICEX after a long, 6-day decline,” Oleg Shagov, head of the analytical department at investment company Solid, said.

Brent rose 0.48% to U.S. $48.40 per barrel at 8.57 a.m. Moscow time, which is a positive sign because it finally shook off consolidation at a $48 level, Shagov said.

Putin and Obama will discuss the peace plan in Syria and Ukraine, some media reported.

A Thursday’s announcement that the U.S. Federal Reserve (Fed) is likely to raise the interest rate already in 2015 will strengthen the U.S. dollar against the ruble, this is why the dollar-pegged RTS will grow on Friday, Anton Startsev, a senior analyst at investment company Olma, said.

The Russian government’s desire to withdraw a part of oil companies’ revenue will continue to put pressure on the sector, and given its importance, on the Russian market as a whole, VTB24 analyst Stanislav Kleshchev said.

Later on Friday, Russian traders will pay attention to the release of the U.S. gross domestic product (GDP) final estimate for April–June, Startsev said.

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