Russian stocks to rise mainly because of weak ruble

MOSCOW, Jun 8 (PRIME) -- The Russian stock market is likely to start Thursday's trading session with a slight increase mainly because of the ruble weakness, analysts said.

“The technical picture has not changed for the MOEX Russia Index, it has stayed in the sideways trend since May 30. The buyers have priced in the June 6 fall, and they are waiting for a new batch of news. Their strength stems from the weak ruble, which is in the red zone in Asia right now, and the MOEX Russia Index may recover to 2,730 in the first half of the day,” BitRiver’s financial analyst Vladislav Antonov said.

The geopolitical risks that could have an impact on the ruble and the oil prices are still present on the market. The current deficit of Russia’s budget may have a negative impact on the Russian economy, Antonov said.

Alexei Golovinov, senior analyst at Promsvyazbank, also said that the MOEX Russia Index may trade above 2,700 today.

“We expect demand for the shares of IT companies to persist, and the securities of exporters in general and of Tatneft and Rosneft in particular may also try to regain some ground after yesterday’s losses,” Golovinov said.

Yelena Kozhukhova from Veles Capital said that the MOEX Russia Index maintained the support level of 2,660, which shows that the main bullish trend was still present on the market. The risky assets are waiting for strong drivers, and the oil prices will have to define further trends soon.

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