Russian stocks can rise on oil price, foreign markets recovery

MOSCOW, Oct 5 (PRIME) -- The Russian stock market will likely increase at the start of Monday's trading session as the foreign markets and oil prices are recovering after Friday’s dive, analysts said.

"An increase of the RTS index is possible today at the start of trade following the global stock markets and oil prices. The first reaction to the U.S. president’s diagnosis (with the coronavirus) may have been overly negative and now traders have focused on a speech by the U.S. Federal Reserve System head scheduled for Tuesday, in which they hope to hear that liquidity support is to last long," Olma senior analyst Anton Startsev said.

Finam analyst Alexei Korenev said that the oil price recovered from the lows and reached U.S. $40.07 for the Brent blend and $37.95 of the WTI as of 8:03 a.m., Moscow time, on Monday. According to Korenev, the market reacted to a better than expected statistics by Baker Hughes -- the number of drilling rigs rose to 266 from 261, while investors might have expected a weaker growth.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, said that the external background for the Russian market at the opening was positive because the U.S. stock market futures and the Japanese market grew. The Chinese market was closed due to a national holiday.

He expected the MOEX Russia Index to open with an about 0.4–1.0% upward gap at 2,865–2,880. The levels of 2,850 and 2,840 will be support and 2,890 and 2,900 resistance.

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