Russian stocks can grow on significant rise of oil futures

MOSCOW, May 20 (PRIME) -- The Russian stock market will likely increase on Monday in the morning on the back of a significant rise of oil futures following a meeting of the OPEC plus deal monitoring committee that ended with an overall approval of prolongation of the deal, analysts said.

“On the one hand, approval of the plans of prolongation of restrictions on oil supply by the majority of OPEC countries-participants supported oil prices (Brent futures are traded higher than U.S. $73 per barrel), which can become a factor of increase of the demand in the oil and gas sector,” Olma senior analyst Anton Startsev said.  

“On the other hand, strengthening of the U.S. dollar on the global currency market (the DXY index exceeded 98 for the first time in two weeks) affects the comparative attractiveness of assets on developing markets negatively,” Startsev said.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, said that taking into account a significant rise of oil futures in the morning, the state of the external background for the start of the trading session in Russia can be qualified as positive.

Manzhos said that the MOEX Russia index will likely open with a moderate increase of about 0.3%, close to 2,585. The levels of 2,570 and 2,560 are acting as the closest support ones and the levels of 2,590–2,600 as the resistance ones. According to Startsev, the RTS index will likely consolidate at 1,250 in the short term.

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