Market Buzz: Investors are bullish after New Year holidays

Analysts say the Russian market is likely to increase today as the bullish trend persists after long-term holidays and with the high oil price.

Many Russian investors, rested and fresh, will be buying in, also due to the beginning of the dividend race,” says Pavel Emilyancev from Invetscafe.

Yesterday the MICEX put on 1.97%, reaching 1477 points, and the RTS showed 2.8% growth, settling at 1470 points. The positive dynamic is supported by rather high oil prices – Brent oil is being traded for $113 per barrel – and by an escalating S&P500, which increased by 1%.

Globally, important statistics on German GDP for 2011 and the UK’s November trade balance are expected today, but the data are not likely to influence Russian trade dynamics.

I believe that liquidity will be returning to the market during the following days we suggest investors focusing on the oil sector, which seems to be the more attractive sector in Russian equities, however given that the overall market is going to be on the downside in the first half of the year and maybe on the upside in the second half of year, all purchases should be really careful,” says Evgeny Kochemazov from Alfa-Capital.

US stocks indices also started the session bullishly due to yesterday’s auspicious data on the Australian, Great British and Canadian housing markets. Anticipation of the US companies’ data reporting will be also creating stock demand. The Dow Jones saw 0.56% increased trading at 12462.47 points and the NASDAQ grew 0.97%, trading at 2702.50 points.

Asian markets have also mostly shown growth today, while investors are looking for value in China-tied stocks amid continued anticipation of further policy easing.

Australia’s S&P/ASX 200 index rose 0.9%, while Japan’s Nikkei Stock Average and Hong Kong’s Hang Seng Index each added 0.2%.

South Korea’s Kospi lost 0.3% and China’s Shanghai edged down 0.1%.