Oil price, positive environ may push Russian stocks up on Tuesday

MOSCOW, May 31 (PRIME) -- Russian stocks may open with an increase on Tuesday due to a relatively high oil price, while some support may be provided by a positive external background and news flow, analysts said.

The Brent oil price fell only 0.18% to U.S. $49.67 per barrel as of 8.27 a.m. Moscow time, according to the ICE exchange. Besides that, European floors closed with an increase on Monday, futures for the U.S. stock indices are now in the green zone and Asian stocks are rising.

“A slight increase is possible today at the first half of the day. More and more participants of the market say that the U.S. economy may withstand toughening of the Federal Reserve System’s (Fed) monetary policy without significant losses, and the optimism resulted in an increase of Asian bourses,” Anton Startsev, senior analyst at investment company Olma, said.

The Brent oil price is trying to get back to the $50 per barrel mark, and may even climb above it today due to expiration of the closest oil futures contract. The price is also supported by concerns regarding recent disruptions of oil supplies due to a possible strike at oil drilling rigs in Norway, Oleg Shagov, head of investment company Solid’s analytical department, said.

“We expect the Russian stock market to open in a neutrally positive way within the range of 1,935–1,940 points of the MICEX index, which may show the longest period of consecutive growth this year if it continues to increase during the day,” Shagov said.

Still, there is not enough positive impact from the background, so the market may open with insignificant changes around 1,935 points of the MICEX index, Vitaly Manzhos, senior analyst at Bank Obrazovanie, said.

“The levels of 1,920 and 1,910 points will become the closest support, while the 1,940 point and 1,950 point marks will act as the resistance,” Manzhos said, adding that during the day the MICEX index may switch to consolidation while waiting for significant external drivers.

Corporate news, including financial results of uncut diamond mining giant ALROSA, the country’s second largest bank VTB, oil company Gazprom Neft, container shipping company TransContainer and fertilizer producer Acron and may have an influence on the market today, Shagov said.

During the day, some macro statistics from the E.U. and the U.S. will be published and may increase the volatility of the Russian market, but this may not provide Russian stocks with significant reasons for downward or upward movements, Manzhos said.

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