Russian stocks likely to open higher amid strengthening crude

MOSCOW, Jul 17 (PRIME) -- The Russian stock market is likely to open higher on Monday due to a favorable external background and oil price recovery, analysts said.

“We expect the MICEX to open (flat or slightly higher) within a 1,960-1,965 range and believe the benchmark may try to resume its local upward trend, which started in the middle of June,” Oleg Shagov, head of investment company Solid’s research department, said.

Shagov said that the market is supported by strengthening September Brent oil futures, which are consolidating around a $49 per barrel mark in the wake of a release of better-than-expected statistics revealing acceleration of China’s economic growth.

Anastasia Sosnova, senior analyst at Bank Rossiysky Capital, added that the Brent crude price is close to the upper range of a $49-50 medium-term band and is supported by a weakening U.S. dollar.

Alpari senior analyst Anna Bodrova said that the petroleum price may break through the local highs soon.

The main U.S. stock indices futures demonstrate no considerable movement, the Asian markets are mixed while the European pre-market trading points to a higher start of trade.

The Russian market will also be driven by releases of April-June operating results by Magnitogorsk Iron and Steel Works (MMK), realty developer Etalon and Petropavlovsk Plc, which operates gold deposits in this country.

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