Russian stocks may increase on oil market revival

MOSCOW, Apr 27 (PRIME) -- Russian stocks may open in the green zone on Wednesday because of oil prices increase, analysts said.

“An increase is possible at the start of the trade – the quotations of Russian securities will be supported by a certain revival on the oil market which became possible after the World Bank improved its outlook for the average oil price for this year to U.S. $41 from $37 per barrel,” Anton Startsev, a leading analyst at investment company Olma, said.

The shrinking U.S. oil reserves will also support the ascending trend in Russia, Oleg Shagov, head of investment company Solid’s analytical department, said.

Brent grew 1.20% to $46.29 per barrel as of 9:32 a.m. Moscow time.

The U.S. oil and oil product reserve data will become a significant driver of trends on the Russian market. Dynamics of foreign market indices, fluctuations of the ruble and macroeconomic statistics will also influence the Russian market on Wednesday, Shagov said.

Market participants will be preparing for U.S. Federal Reserve System’s policy announcement later on Wednesday, followed by the Bank of Japan and the Russian central bank’s board of directors’ meetings later this week, Shagov said.

The approaching May holidays amid uncertainty over oil prices and U.S. policies will make investors close shorts later in the week, Promsvyazbank analyst Ilya Frolov said.

Gazprom will be the market leader on Wednesday ahead of a report posting on Thursday and on the back of traders’ hopes for larger dividends, Frolov said.

Shares of retailer Lenta will be in the focus of investors’ attention because the company will publish its January–March operating results, Finam Analyst Timur Nigmatullin said.

Another retailer Magnit will likely soon find its lows after a disappointing quarterly report. Mobile operator MegaFon may rise on the eve of publishing a report for January–March, Nigmatullin said.

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