Russia stocks to rise as futures for US indices, oil prices grow

MOSCOW, Apr 27 (PRIME) -- The Russian stock market is likely to open higher on Tuesday as the growth of the futures for the U.S. indices and oil prices create a favorable background, analysts said.

“The external situation is positive this morning, as the futures for the U.S. indices rise by 0.2%, the oil prices rebound by 1% to trade above U.S. $65 per barrel. This is why we expect growth at the opening with the indices setting new historic highs,” Alor Broker senior analyst Alexei Antonov said.

Still, speaking about a strong upward movement is premature -- the MOEX Russia Index should close above 3,620 first, which would open the technical road for 3,670. Second, the upcoming long weekend does not favor purchases, as many traders may start closing their long positions, Antonov said.

“As long as there is a lull regarding sanctions, the Russian shares and the ruble have no serious obstacles that prevent them from growing in the short term,” Yelena Kozhukhova, analyst at Veles Capital, said.

Bogdan Zvarich, senior analyst at Promsvyazbank, also said that the external background for the national market was good in the morning.

“Taking into account the external background, we expect purchases of the Russian shares to prevail at the start of trade, which would allow the market to set new historical highs. As a result, the MOEX Russia Index will make one more step toward the middle of the 3,600–3,700 range. Given the dynamics of oil prices, the oil and gas sector may become the leader, as the securities will try to regain Monday losses,” Zvarich said.

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