Russian stocks may edge up at opening on oil price rise

MOSCOW, Oct 5 (PRIME) -- Russian stocks are likely to edge up at opening on Wednesday as traders will price in higher oil prices, analysts said.

“We expect the market to open with an insignificant increase within a 1,985–1,990 range of the MICEX index. The levels of 1,975 and 1,960 will still act as support, while the levels of 2,000 and 2,010 will again act as resistance,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

The background is positive at the beginning of the day as the Brent oil price has risen 0.877% to U.S. $51.32 per barrel as of 9.12 a.m. Moscow time, according to the ICE exchange. Asian floors are also showing marginally positive dynamics.

But Bodgan Zvarich, an analyst at investment company Finam, said that the U.S. stock indices sent a negative signal to the market. “The Dow Jones and the S&P500 lost about 0.5% yesterday, and this morning futures for major U.S. indices continued to fall,” he said.

Still, the oil price growth may overcome the negative impact of the U.S. stock indices, and demand for Russian assets will rise to allow local indices to grow at the beginning of the day, Zvarich said.

Oleg Shagov, head of investment company Solid’s research department, said that later in the day investors will track a speech that President Vladimir Putin will give to the new State Duma, the parliament’s lower house.

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