Russian stocks to grow slightly on oil price, foreign markets rise

MOSCOW, Nov 21 (PRIME) -- The Russian stock market may advance on Monday in the morning, following an increased oil price and foreign markets dynamics, analysts said.

“It seems that we must expect positive MICEX dynamics in the first half of the day due to a positive background today. Nevertheless, the growth will barely exceed 0.5%,” Timur Nigmatullin, an analyst at investment company Finam, said.

Asian indices are in the green zone, U.S. S&P futures are growing slightly, which makes for a positive background for Russian stocks, Nigmatullin said.

A possible U.S. key rate increase later in the year has been already included in the prices of assets worldwide, he said

Oleg Shagov, head of investment company Solid’s research department, said that Brent futures for January grew beyond U.S. $47 per barrel as oil producing countries are increasingly willing to complete oil freeze negotiations with an agreement in November, the Russian market will react positively to this trend.

The information that Germany’s Chancellor Angela Merkel will run for the post again is a bad news for ruble assets. The Russian industrial output, real disposable income and retail sales figures released on November 18 were also disappointing, Nigmatullin said.

The Stockholm Arbitration Court will hear a case between Naftogaz Ukrainy and Gazprom on Monday. Shagov said that Russian investors will follow the news.

ALROSA and power producer Territorial Generating Company-1 (TGC-1) will release their financial reports, which will also provide some valuable information, he said.

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