MOEX Index will try to overcome 3,500 point mark this week – experts

TASS Russian News Agency | Feb 15, 2021 at 7:02 PM

MOSCOW, February 15. /TASS/. The Russian stock market began the trading week with a steady rise and may reach new highs in the coming days, experts interviewed by TASS say. According to their estimates, the MOEX index will overcome the 3,500 point mark, while the Russian currency may strengthen up to 72 rubles against the dollar.

Despite the day off on the US Exchanges, as well as the closure of a number of Asian exchanges during the New Year celebrations, most of the open trading floors are "in the green," which contributes to growth in Russian assets, says Freedom Finance analyst Yevgeny Mironyuk.

By the evening, the MOEX index added 1.52% and reached 3,479.31 points, the RTS index went up 2.22% to 1,494.46 points.

The domestic market is also supported by the outpacing dynamics of shares of a number of issuers from the retail, electricity and oil and gas sectors, Mironyuk adds. According to the expert, the MOEX index will reach the 3,500 point mark in the coming days.

In turn, Natalya Malykh, head of the Finam stock analysis department, does not rule out the growth of the indicator during the week to 3,600 points.

"The development of external background is quite promising for the Russian market: statistics on morbidity in large countries are improving, oil prices continue to recover, and new stimuli for almost $ 2 trillion are being discussed in the US," she explains.

The key risk is still the aggravation of the sanctions issue, Malykh stressed.

BCS World of Investments is also expecting the ruble indicator to rise above 3,500 points. Veles Capital does not rule out reaching January highs of 3,520 and 1507 points for the MOEX and RTS indices, respectively.

Ruble may continue to strengthen

At the moment, the external background is favorable for the Russian ruble.

"Higher risk appetite prevails in global markets, and oil prices are setting record after record amid escalating tensions in the Middle East, which supports the national currency," Anna Zaitseva, an analyst at Finam, says.

"At the same time, the factor of sanction risks took second place, despite the rather tough Friday statements by Russian Foreign Minister Sergei Lavrov that in case of stronger pressure of sanctions on Russia from the EU, one cannot rule out a break in relations between the Russian Federation and the European Union," the expert adds.

Finam expects that during this week the national currency rate will fluctuate in the range of 72-74.5 rubles for the dollar and 88-90 rubles for the euro.

The Veles Capital investment company predicts that in case of a favorable development of events, the ruble may strengthen up to 72.5 rubles for the dollar and 88.3 rubles for the euro. In addition to sanctions risks, overbought oil and the risks of its correction may hinder the upward movement, notes Veles Capital analyst Elena Kozhukhova.

BCS World of Investments predicts that the ruble will reach the mark of 72.6-73.2 rubles, while Freedom Finance expects the ruble to reach 72.3-74.5 rubles for the dollar.