Russian stocks can grow as oil prices continue to increase

MOSCOW, May 17 (PRIME) -- The Russian stock market will likely open higher on Thursday to catch up with the oil prices, which have risen by more than 5% since the start of May, analysts said.

“Taking into account a strong increase of oil futures in the evening, the state of the external background before the start of trade in Russia can be qualified as moderately positive,” Vitaly Manzhos, senior risk manager at investment company Nord Capital, said.

The Brent futures grew 0.1% in the morning after a strong Wednesday evening rise, gold futures remained unchanged. Japan’s Nikkei 225 rose 0.7%, Hong Kong’s Hang Seng fell 0.05%. All these factors will likely contribute to a positive start of the session in Russia, Manzhos said.

Olma senior analyst Anton Startsev said that oil prices have grown by more than 5% since the start of May and investors realize that this rise is not reflected in Russian blue chips and the ruble rate.

According to Manzhos, the MOEX Russia Index will grow by about 0.3% and open close to 2,345. The levels of 2,330 and 2,320 will be support and 2,350 and 2,360 will be resistance.

Startsev said that the RTS will likely consolidate close to 1,200.

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