Russian stocks to rise on ruble fall, positive environment

MOSCOW, Jul 18 (PRIME) -- The Russian stock market is likely to start the Tuesday trading higher on the back of the ongoing depreciation of the ruble and a favorable external background, analysts said.

“The MOEX Russia Index grew by 0.51% while the RTS Index fell by 0.48% (on Monday). The upward trend is still present and is not slowing down because it receives support from the weak ruble. The index is at an important level, and (the MOEX Russia Index) may even climb to 2,950 is the ruble starts falling again,” Bit River’s Financial Analyst Vladislav Antonov said.

The ruble fell again on Monday because the Brent oil price shrank by 4.21% to U.S. $78.43.

However, the ruble will receive support from the taxpaying period and investor expectations that the central bank would raise its key rate at the upcoming meeting of its board of directors, he said.

Vladislav Silayev, senior trade at managing company Alfa-Capital, said that the background for the Russian market was positive.

“The Asian bourses are mainly in the green zone, the futures for the S&P 500 index strengthened its positions during the pre-market trade, and the oil prices consolidate with the Brent price fluctuating around $78.70,” Silayev said.

At home, investors will focus on the meetings of the board of directors of fish producer Inarctica and insurer Renaissance Insurance, while the shares of oil company Surgutneftegas are to experience a dividend cut-off on Wednesday. Investors will also monitor the U.S. June retail sales and industrial output, he said.

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