Russian stocks can increase, erasing recent oil-driven losses
MOSCOW, Dec 16 (PRIME) -- The Russian stock market will likely open with an upward gap on Wednesday because oil prices earlier reached their lows and started to recover, which is why Russian indices are still oversold despite a recovery that started Tuesday, analysts said.
“A continuation of increase is possible today in the start of the trade due to a technical rebound. At the same time, the technical analysis data does not let me say that there is a cancellation of a short-term RTS downward trend,” Olma’s senior analyst Anton Startsev said.
The MICEX is expected to open with a small upward gap at 1,740–1,745, Oleg Shagov, head of investment company Solid’s analytical department, said. Both the financial and the oil and gas sector increased on Tuesday in the evening. The continuation of growth in these sectors will likely support the index, he said.
Brent futures were rising on Tuesday in the evening. At 9.10 a.m. Moscow time on Wednesday, Brent lost 0.49% and traded $38.26 a barrel.
U.S. stock futures are growing in the morning prior to Russia’s opening and key Asian markets are rising, which will support the domestic market recovery, Shagov said.
ALROSA and Moscow Exchange stocks are seeing a medium-term growth trend, Bank Obrazovanie’s senior analyst Vitaly Manzhos said.
The results of a U.S. Federal Reserve System meeting will be posted in the evening and will noticeably influence the Russian market trends later this week, Startsev said. The MICEX will be consolidating in the evening as traders will be waiting for statements, Manzhos said.
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