Russian stocks to rise on international optimism over econ support

MOSCOW, May 19 (PRIME) – The Russian stocks are likely to grow on Tuesday morning supported by optimism of foreign floors caused by reports of international governments providing economic support in the coronavirus pandemic, analysts said.

“From the point of technical analysis, there is still a possibility for the RTS Index to continue growing, and an upward movement may become more consistent if the index consolidates above the local maximum level close to 1,170. The factors of liquidity support include a decision of the leaders of Germany and France to approve a 500 billion euro financing to the countries hurt by the coronavirus from the E.U. budget,” investment company Olma’s senior analyst Anton Startsev said.

The external background is positive as the U.S. stock index futures edged up, the Asian stocks rise, and the European stocks and the U.S. stocks closed higher on Monday, Startsev said.

“We expect a rebound of up to 1%. The market will continue its growth in case of further positive dynamics of the global commodity and stock floors,” Georgy Vashchenko, head of the department for trade operations on the Russian stock market at investment company Freedom Finance, said.

The Brent oil price grew 0.689% to U.S. $35.05 per barrel as of 9.00 a.m. Moscow time, according to the ICE exchange.

But Alor Broker’s analyst Alexei Antonov said that the Russian market may open flat or even with a slight contraction, because it only grew on Monday in line with the foreign bourses that priced in the successes of one of the coronavirus vaccines and the U.S. Federal Reserve Chairman’s comment that the U.S. economy will start its recovery in the second half of the year.

“These growth reasons were very shaky and definitely short-term. It looks like they were priced in completely yesterday. … It is possible that investors will start to take their yesterday’s profits if the markets do not receive a new portion of positive information immediately,” Antonov said.

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