Russian stocks to rebound after Tue slide on higher oil prices
MOSCOW, Nov 25 (PRIME) – Rising oil prices will help the Russian stock market to recover on Wednesday morning after Tuesday’s slump, analysts said.
“The negative influence of the geopolitical factor on risk appetite is in many respects priced in in highly liquid securities, unlike the influence of the same factor on the fuel price trends (Brent futures are trading above U.S. $46 per barrel today),” Olma’s senior analyst Anton Startsev said.
On Tuesday, the MICEX plunged 3.11% and the RTS 3.34% on the news of Russian aircraft crash in Syria.
Geopolitical tensions spurred by the downing the Russian fighter jet in Turkey made oil prices surge; another factor was a statement by Venezuela President Nicolas Maduro that the oil market will see a “good surprise” within the next few days, Startsev said.
The RTS can start rising straightaway in the morning on Wednesday, while the MICEX recovery can take longer. However, from a technical point of view, the index has stayed above 1,800, which means that a long-term trend is positive, Oleg Shagov, head of the research department at investment company Solid, said.
Sberbank is in big demand because of CEO German Gref’s recent statement that he stands for full privatization of the bank, Vitaly Manzhos, senior analyst at Bank Obrazovanie, said. The statement was unexpected but “there is no smoke without fire,” the analyst said.
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