The Russian market is likely to continue its upward trend amid neutral background while the upcoming FRS session and the IMF meeting will probably drive markets this week.
The IMF meeting is scheduled on March 15, with the Greek issue on the top of agenda. The FDS meeting will take place on Tuesday to discuss economic policy. Investors expect Ben Bernanke to make it clear about probable cash injections. “In general we expect a neutral background and we suppose that the Russian market will enter a consolidation phase in the short term,” said Andrey Alexeev from Absolut bank.Russian stock markets closed in the black on Sunday, an abnormal trade day in lieu of the recent three-day public holidays. However, the trade volumes were low due to the lack of external drivers. Indices jumped at the beginning of the trading session on Sunday as investors tried to win back after the break. The MICEX added 2.13% while the RTS climbed 2.63%. The metal and mining sectors performed well on Sunday after a significant drop on Tuesday: MMK added 3%, Mechel gained 3.41% and NLMK climbed 3.1%. Sberbank (+1.94%), Surgutneftegaz (5.6%), as well as preferred shares of Transneft (6.18%), were among gainers.Most Asian markets dipped on Monday after China issued trade data showing the biggest trade deficit since 1989 on the weekend. South Korea’s Kospi lost 0.6%, Hong Kong’s Hang Seng and Shanghai Composite both shed 0.3%, and Australia’s S&P/ASX 200 lost 0.2%. Japan’s Nikkei Stock managed back the regional trend with a 0.4% gain. Japan is expected to publish the CCI for February later on Monday.