Russian stocks can grow on oil price increase on OPEC statements

MOSCOW, Aug 25 (PRIME) -- The Russian stock market will likely rise on Friday in the morning, supported by growth of oil prices on a statement by OPEC which promised additional measures to balance oil prices and amid concerns over the Harvey Cyclon which is about to reach the U.S. shore, analysts said.

“New attempts of the RTS index to exceed the 1,050 level can be made today at the start of the trading session: the external background is quite favorable for purchases,” Olma senior analyst Anton Startsev said.

Finam analyst Sergei Drozdov said that oil prices are supported by concerns over the Cyclone Harvey which can turn into a hurricane and reach Texas. OPEC issued a statement on Thursday, promising additional support of oil prices in case of need and saying that the current output reduction deal can be prolonged.

The Brent price rose 0.77% to U.S. $52.44 as of 9:05 a.m. Moscow time.

Drozdov said that the MICEX will be striving for the level of 1,990 if the positive dynamics continues and that 1,950 is the current support level.

The boards of directors of Magnitogorsk Iron and Steel Works (MMK) and Novatek will meet on Friday in order to consider interim dividends, which according to Startsev will be the most important corporate events in Russia.

Officials of the U.S. Federal Reserve System (Fed) and the European Central Bank (ECB) will give speeches in Jackson Hole, which can provide important insights to market participants, he said.

Drozdov said that results of the meeting can be disappointing to investors because the central banks’ officials will barely clarify details of their future policies.

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