Russian stocks can open neutrally, then rise thanks to strong oil

MOSCOW, Oct 18 (PRIME) -- The Russian stock market can open neutrally on Monday in light of a mixed foreign background, but advance during the day thanks to strong crude prices, analysts said.

“The Russia stock market is expected to open neutrally. The RTS index has a support at 1,836… It is important for the bulls that the index is above the strong support area of 1,770–1,780,” Andrei Vernikov, head of investment analysis department of Investment Group Univer said.

Alor Broker analyst Alexei Antonov said that the external background looks uncertain on Monday morning. The Brent crude price is adding 1% to U.S. $87.5 per barrels, but the main U.S. indices futures are trading slightly negatively.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, expects the MOEX Russia Index to edge up by 0.1–0.4% at the opening and to rise into the 4,290–4,300 range later in the day thanks to strong oil.

The market will also be driven by releases of financial and operating reports for January–September by steel producer Severstal, container operator Global Ports, and realty developer PIK Group.

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