The Russian stock market has good chances for growth

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Favourable external background formed the conditions for a recovery of the Russian stock indexes at the start of the new trading week. Additional support to the domestic market has a demand for raw materials. Brent crude resumed its growth and is moving towards level 78. Afternoon Mosberg index increased nearly 1%, reaching the level of 2376 points. RTS raliroad by 1.2 per cent to 1187 items. The ruble strengthened moderately against the dollar and Euro, increasing by between 0.2%.
The universal optimism in the segment of the most liquid securities are prevalent purchase. Financial sector stocks feel confident – “savings” is more expensive by 1.5%, papers VTB grow by 0.9%. In the oil and gas sector are also seen buying. Rosneft is trading higher by 1.1%, “Gazprom” rises in price almost on 1%, a little behind LUKOIL, which is growing within 0.5%.
Partly the enthusiasm of investors is associated with positive expectations about the upcoming meeting of Putin and trump, to be held next week in Helsinki. The players hope to create the basis for a thaw in relations between the two powers and, consequently, improving the investment climate in Russia.
In the short term, the Russian indexes have all chances to continue strengthening. RTS is directed towards the key level of 2000 points. To achieve it will require a more steady rebound of rouble demand in conditions of improving sentiment in emerging markets, and also benefits from the widespread weakness of the dollar, which accelerated the decline after weak data on wages in the United States.
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Igor Kovalyov,
Analyst
InstaForex companies group