Russian stocks to rise on oil growth, Moody’s outlook upgrade

MOSCOW, Feb 20 (PRIME) -- The Russian stock market will open with a positive gap on Monday in the morning on the back of an oil price increase and an upgrade of the outlook on the sovereign credit rating by Moody’s, analysts said.

“The ultimate influence of the key factors that provide significant impact on behavior of the Russian stock market is moderately positive today in the start of the day, in our estimates,” Oleg Shagov, head of investment company Solid research department, said.

Brent futures are fluctuating at approximately U.S. $55.8 per barrel as hedge funds raise bets for continuation of the price growth. U.S. stock market futures and the key Asian markets are slightly gaining. The European premarket signals positive gaps during the trading session start later in the day. All these factors will contribute to a positive opening of the Russian stock market, Shagov said.

Rating agency Moody’s improved its outlook on the Russian sovereign rating to stable, which, according to Finam analyst Timur Nigmatullin, is a positive factor for the Russian market.

On the other hand, the escalation of violence in the east of Ukraine poses a threat of new sanctions against Russia, which is why the market will be mostly consolidating in the first half of the day, he said.

Shagov said that the MICEX will likely open at 2,130–2,135 after closing at 2,128.21 on February and can try to take back losses of last week if conditions are favorable.

The U.S. stock market will be closed for Presidents Day.

According Nigmatullin, German producers’ prices and euro zone consumer sentiment index will be the most important foreign statistics releases during the day.

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