Russian stocks may edge up at opening on rising oil prices

MOSCOW, Apr 23 (PRIME) – The Russian stocks are likely to open higher on Tuesday as rising oil prices support trade in shares of oil and gas companies, analysts said.

“On Monday, oil prices jumped to U.S. $74 per barrel on the news about the U.S. intent to block supplies from Iran, and this pushed the MOEX Russia Index up 0.8%,” Alexei Antonov, analyst at Alor Broker, said.

“The market grew despite a weak external background -- futures for the U.S. stock indices were in the red zone for almost the entire trade session in Russia. Today, market mood remains positive.”

Vadim Kravchuk, analyst as investment company Solid, said the MOEX Russia Index may firm at the start the day as China’s indices corrected upward after a 3.15% fall on Monday, which supports the Russian market together with oil price dynamics.

“We expect the MOEX Russia Index to open with an insignificant increase of about 0.1–0.3% close to 2,590. The levels of 2,580 and 2,570 will act as the closest support, while 2,600 and 2,610 will become the resistance. After a moderately positive start of the day, we may see the index attempting to grow further, to 2,600 supported the Brent oil futures trading close to their six-month highs,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

Olma’s senior analyst Anton Startsev also said that oil price dynamics support demand in the oil and gas sector, while the global stock markets are in hibernation.

“Investors are keeping an eye on the flow of corporate reports and waiting for economic data. In particular, the U.S. is to release a preliminary estimate of its gross domestic product for the first quarter of this year on Friday,” Startsev said.

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