Russian stocks can recover after losses as oil prices rise

MOSCOW, Jun 16 (PRIME) -- The Russian stock market will likely open with an upward gap on Friday, rebounding after the losses seen earlier this week, and the rise can be supported by increasing oil prices, analysts said.

“The ultimate influence of the key external factors significantly affecting the behavior of the Russian finance market has been moderately positive today at the start of the day in our estimates,” Oleg Shagov, head of investment company Solid’s research department, said.

Brent futures are ascending to a level above U.S. $47 ahead of the U.S. drilling activity data release. U.S. stock market futures are growing, as well as the main Asian indices. The European premarket signals an increase later in the day. According to Shagov, these factors will contribute to a positive opening of the Russian market.

The MICEX decreased to its annual low of 1,817.82 on Thursday and the trade volume signaled a culmination of sales, he said. RTS fell as well.

The MICEX is expected to open at about 1,820 and can attempt to recover after losses it had earlier this week, Shagov said.

Olma senior analyst Anton Startsev said, the RTS can come back to a psychological threshold of 1,000.

A meeting of the central bank to discuss possible changes of the key rate will be the main Friday’s event in Russia, Shagov said. According to Startsev, the majority of market participants expect a key rate cut to 8.75% from 9.25%.

End