Russian stocks can grow as oil price increases to $71

MOSCOW, Nov 12 (PRIME) -- The Russian stock market can open higher on Monday and erase November 9 losses on the back of oil price growth to U.S. $71 per barrel, analysts said.

“Some upward correction of the RTS index is possible today at the start of trade. The Brent price has stabilized above $71 per barrel, the situation on the global trading floors also allows us to expect lower sales pressure,” Investment company Olma’s senior analyst Anton Startsev said.

He said that the postponement of U.S. sanctions against the shares of RUSAL, En+ Group and GAZ Group is also a moderately positive factor for the Russian market.

Algo Capital’s senior risk manager Vitaly Manzhos said that the background for the start of the trading session is positive as the U.S. stock market futures are rising by up to 0.8%, the gold futures are neutral, and the Asian markets are mixed.

As a result, the MOEX Russia index can open with a 0.5–0.8% upward gap at about 2,420. The levels of 2,400 and 2,390 will be the closest support and 2,440 and 2,450 resistance.

Startsev said that the non-residents’ activity on the market can be subdued because of a shorter trading day in the U.S. on Veterans Day.

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