Russian stocks may grow supported by oil prices

MOSCOW, Nov 1 (PRIME) -- Russian stocks are likely to edge up at opening on Tuesday supported by a favorable external background and a slight growth of oil prices, analysts said.

“The ultimate influence of key external factors that impact the behavior of the Russian stock market seriously is moderately positive today at the beginning of the day…The Brent oil price is edging up…on OPEC Secretary General Mohammed Barkindo’s statement that OPEC and Russia firmly plan to finish work on their agreement ahead of a November 30 meeting,” Oleg Shagov, head of investment company Solid’s research department, said.

The Brent oil price went up 0.74% to U.S. $48.97 per barrel as of 8.50 a.m. Moscow time.

The U.S. stock index futures are edging up, while the Asian floors show no common dynamics. “We expect the Russian stock market to open close to about 1,995 of the MICEX index and suppose that the indictor may grow later in the day due to improvements of the external background and positive corporate news,” Shagov said.

Anton Startsev, a senior analyst at investment company Olma, said that the RTS index can rebound slightly at the beginning of the day thanks to a better foreign environment after the release of unexpectedly strong Chinese business activity figures.

Still, technical analysis shows that a downward correction in the Brent oil price and the RTS index may continue, Startsev said.

“We expect the market to open with a moderate increase of 0.3% of the MICEX index close to a 1,995 mark. The levels of 1,980 and 1,970 will become the closest support, while 2,000 and 2,010 will act as resistance,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

Manzhos said the favorable external background and dynamics of oil prices will support the local market, and U.S. jobless claims may have some influence on the local market later in the day.

Shagov also said that among local events that may have an impact on the market are January–September financial results of power producer Enel Russia under International Financial Reporting Standards (IFRS), and an investor day at steelmaker Severstal in London.

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