Market Buzz: up on oil
24 Jan, 2012 06:22
Both the RTS and the MICEX closed Monday's trading session on a positive note, as oil prices were up after the EU agreed on the embargo on Iranian oil exports. Experts say the upward trend will go into Tuesday trading in Russian markets.
“Given the improved outlook for oil price because of Iran’s news that we saw yesterday, and given very low valuations for Russia generally, and many of our clients continue to see fund flows into Russia’s dedicated funds, we think that markets will gradually melt higher,” explained Michael Stein, head of equity sales from Otkritie FC.The Davos Economic Forum scheduled to kick off on January 25 in Switzerland, together with a much-awaited speech from President Obama, as well as corporate news from both outside and within Russia, will keep investors busy all week long, Stein added.The RTS was up 1.75% on Monday to 1 522,65 points, with a weakening rouble eating into MICEX growth, that increased by a more moderate 0.54%, to 1 499,27 points.Analysts agree that Monday’s news from Europe was the main market driver, pushing the WTI price up 1.5 %, and Brent up 1%. The EU agreed on sanctions against Iran’s Central Bank and 8 Iranian State Companies, as well as introducing an embargo on Iranian oil exports.