Russian stocks can grow on foreign markets, oil price rise

MOSCOW, Aug 18 (PRIME) -- The Russian stock market will likely increase on Wednesday at the start of the session because the foreign markets and oil prices demonstrate growth, analysts said.

"Asia is trading positively -- we will certainly open with an upward gap. I see no preconditions for bearish speculations in the majority of shares," Andrei Vernikov, head of the investment analysis and education department of investment company Univer Capital, said.

According to Vernikov, the oil prices are holding above the support levels of U.S. $68.5 and $67.44 in Brent. The market is supported by the news that vaccination against the COVID does not trigger the appearance of new strains. Analysts of the leading banks see the current decline in demand as a temporary phenomenon and will not reduce the price forecast.

But there is still pressure on oil as a high car season is about to end in the U.S., and refining in China has fallen due to a new wave of COVID.

Alor Broker senior analyst Alexei Antonov said that the background for opening of the Russian market is positive because the U.S. stocks futures add about 0.25%, industrial and precious metals increase. The Russian market will likely hit a record during the day, he added.

But the Russian market is also locally overheated, and the upcoming parliamentary elections is seen as a stress factor, as investors are concerned with possible protests.

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