Russian stock may edge up on positive backdrop, oil rising trend

MOSCOW, Oct 27 (PRIME) -- The Russian stocks may open with a small increase on Thursday amid moderately positive external environment and an oil upward trend, analysts said.

“The trading session may open with an upward gap in the amount of less than 1% for the MOEX Russia Index,” Alor Broker analyst Alexei Antonov said.

The external background is positive, Antonov said, adding that “the euro-dollar pair reached parity, and weakening of the dollar pulls the quotes of commodity assets up.”

The U.S. Department of Energy reported on Wednesday a higher-than-expected increase in oil reserves, but oil didn’t reacted with a decrease as the figures were still lower than the ones of American Petroleum Institute, Antonov said. Such a reaction proves that oil tends to grow, he added. The Brent oil blend is trading at around U.S. $94 per barrel in the morning.

The oil stocks may also be supported by media reports that the U.S. may raise its price cap for Russian oil to above $60, Antonov also said.

According to Otkritie Research senior analyst Andrei Kochetkov, the external background is mildly positive before the start of trading in Russia. Oil is trading at the reached levels and this trend promises support for the stocks of the oil and gas sector.

Investors will track the results of a meeting of the European Central Bank, which may announce further increase in the key rate amid high inflation.

The news flow also includes reports of Fix Price and Magnit.

End