Stocks may rise at opening in correction after slump

MOSCOW, Feb 22 (PRIME) -- The Russian stock market may start the main trading session on Tuesday with a slight rebound in correction after Monday’s dive, analysts said.

“The external background prior to the start of the main trade session in Russia is definitely negative, but the morning contraction of the Asian indices has no correlation to the upward rebound in Russia during morning trade,” Andrei Kochetkov, leading analyst for global research at Otkritie Research, said.

The U.S. administration’s statement that there was no reason to approve the “hellish” sanctions as no invasion of Ukraine had happened are surprising. But approval of the “hellish” sanctions would mean suspension of the diplomatic process and a break of diplomatic relations, this is why the Russian market has a chance to start Tuesday’s trade trying to regain some ground, Kochetkov said.

Bogdan Zvarich, senior analyst at financial supermarket Banki.ru, said that the geopolitical tensions would remain the main factor for all the bourses of the world, and worsening geopolitical risks undermines investor appetite for many assets.

“It is worth noting that the MOEX Russia Index may demonstrate attempts at correctional growth during the main trading session, and will trigger the wish of some market players to take profits in speculative short positions. As a result, market volatility will be high,” Zvarich said.

Alexander Arutyunyan, chief economist of investment company Russ-Invest, said the market may take a breather, as the war has not started yet.

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