Russian stocks can grow on oil price increase, flat stock markets

MOSCOW, Mar 15 (PRIME) -- The Russian stock market will likely open with moderate growth on Monday on the back of an oil price increase and neutral foreign markets, analysts said.

"Taking into account the improvement of mood on the oil market, the external background before the start of trade in Russia can be characterized as moderately positive. This creates conditions for opening of the MOEX Russia Index higher, although not seriously higher," Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

The May futures for the Brent oil blend added 0.71% to U.S. $69.71 as of 7:56 a.m., Moscow time. The April WTI added 0.81% to $66.14. Finam analyst Artemiy Shamshukov said that the oil prices grew due to a positive macroeconomic statistics from China and expectations of a fast recovery of the global economy thanks to vaccination and adoption of economic incentive program in the U.S.

Manzhos said that the Russian market benefits from approval of the U.S. economic support package. He said that money disbursement started last weekend, and part of it will end up on the stock and commodities markets.

Shamshukov said that the foreign markets mostly demonstrated neutral dynamics with the S&P 500 rising by 0.04% as of 8:25 a.m., Moscow time.

According to Manzhos, the MOEX Russia Index will likely open with a 0.1–0.5% increase and trade in a range of 3,545–3,560. The levels of 3,500 and 3,510 will be support and 3,580 and 3,600 resistance.

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