Russian stocks to rise early in line with foreign bourses

MOSCOW, Jan 19 (PRIME) – The Russian stocks are likely to open higher on Tuesday as the favorable dynamics of major foreign bourses prompts a positive start of the day, analysts said.

“The RTS Index is likely to increase at the start of today’s trading as it would follow foreign stock indices,” investment company Olma senior analyst Anton Startsev said.

“The market expects that the speech that Janet Yellen, a candidate for the U.S. treasury secretary’s post, is to give today may sway the U.S. congressmen into approving new economic support measures announced by Joe Biden.”

The U.S. bourses were closed on Monday to celebrate the Martin Luther King Jr. Day, but the European indices closed higher. The Asian bourses rose on Tuesday morning, Startsev said.

Alor Broker senior analyst Alexei Antonov said that the Russian stock market has been outperforming its Western counterparts lately due to a continuous inflow of money with the internal investors accounting its significant share.

“The external background calls for further purchases. After the day off in the U.S., the futures for the American indices gain about 0.5–0.6%. The oil price has also gained half a percentage point as it is trying to stay above U.S. $55 per barrel. Prices for the majority of industrial and precious metals rise as well,” Antonov said.

“This is why, if the external background does not worsen, the MOEX Russia Index has all the chances it needs to try and climb above 3,500.”

Startsev also said that releases of financial reports by Bank of America and Goldman Sachs later in the day may have an impact on stock markets.

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