Russian stocks may grow at opening on rising oil

MOSCOW, Dec 9 (PRIME) -- Russian stocks are likely to grow on Wednesday morning in a technical correction supported by a rebound in oil prices above the psychologically important level of U.S. $40 per barrel, analysts said.

“We expect the Russian stock market to open close to 1,720 of the MICEX index and suppose that the stock index may try to claw back some losses it has suffered lately,” Oleg Shagov, head of analytical department at investment company Solid, said.

U.S. stock index futures are rising, making the background for the Russian market moderately positive even though Asian floors show no common dynamics, Shagov said.

“We expect the market to open with a notable increase of 0.3–0.5% of the MICEX index close to 1,725,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

Closest support levels will remain at 1,715 and 1,700 of the MICEX index, while 1,740 and 1,750 will act as resistance, he said.

Technical analysis indicates the possibility of a further contraction of the RTS index, investment company Olma’s senior analyst Anton Startsev said.

During the day, investors will closely track the oil price dynamics due to concerns that OPEC has loosened its control and the oil market may plunge. “According to an OPEC manager from Indonesia, the oil cartel will have to hold an emergency meeting, if oil prices fall below $30 per barrel. If OPEC discusses the scenario, it means that someone is interested in it,” Shagov said.

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