Russian stock market predicted to get back to October 24 level

The end of the hostage taking in Moscow is supposed to make investors, especially Russian investors, as they have mainly been determining the behavior of Russian indices over the last several months, feel optimistic again. Experts say, we may expect stock market indices to get back to the positions that they had before October 24 now. However, the situation with oil companies reporting a decrease in revenues, will be restraining growth, that is why indices will not gain back more than 1-1.5 percent today. The RTS index was reported to get fixed at the 352-354 level. Among the positive factors that will stimulate this tendency are Russian Eurobonds, returning to their previous position and the stabilization of the US stock market. It is evident that the Dow Jones index got stuck close to 8,400 points. US shares are likely to enter a sideways trend this week, which makes foreign investors believe that investing in developing countries is less risky now after an impressive two-week rally on the US market. In addition, an upsurge of US indice futures over last weekend is favorable for the Russian stock market now.

It is worth mentioning that on Friday, October 25, the Russian stock market was nervous and rather inactive. Most speculative sales were carried out on October 24, and October 25 was the day of a slight downtrend of Russian securities, initiated by the situation with oil share prices and a decrease in world oil prices. Among the leaders of the fall were: Tatneft (-1.69 percent), Surgutneftegaz (-0.67 percent) and YUKOS (-0.16 percent). At the same time, RAO UES' shares gained 1.55 percent, which might have been the reaction to large purchase orders.

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Author`s name Editorial Team