Russian stocks to rise on favorable environ, Brexit advance

MOSCOW, Mar 12 (PRIME) -- Russian stocks are to grow on Tuesday morning supported by a favorable external background and advance of the Brexit deal, analysts said.

“A slight increase is possible at the beginning of the day supported by a favorable external background. Media reported that British Prime Minister Theresa May had coordinated a new Brexit deal with the European Commission, and that it would be submitted to the House of Commons today, which slightly increases the probability that the deal will be reached before the March 29 deadline,” Anton Startsev, senior analyst at investment company Olma, said.

The U.S. published unexpectedly robust retail trade statistics, and reports about a merger of Nvidia and Mellanox Technologies plants spurred up trade in the hi-tech sector, Startsev said.

“We expect the MOEX Russia Index to open with a moderate increase of about 0.3% close to 2,475. The levels of 2,460 and 2,450 will again act as the closest support, while 2,490 and 2,500 will become the resistance,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

“After a moderately positive start of trade, the MOEX Russia Index may continue rising to 2,480–2,490, supported by a favorable condition of the external background. At the same time, the background is not good enough to trigger aggressive purchases of Russian shares.”

The background is favorable as the U.S. stock index futures rose by 0.4%, the Brent oil price has gained 0.3%. The gold futures grew by 0.5%, Japan’s Nikkei225 added 1.9%, and Hong Kong’s Hang Seng increased by 1.2%, Manzhos said.

Startsev also said the release of telecom giant Rostelecom’s financial report calculated under International Financial Reporting Standards is one of the most notable corporate news for Tuesday.

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