Russian stocks may increase supported by oil price recovery

MOSCOW, Oct 24 (PRIME) -- The Russian stock market may grow at opening on Wednesday thanks to an improving foreign background with the Brent crude price gradually recovering from previous significant losses, analysts said.

“We believe that the Russian stock market is relatively cheap at the current levels, and expect the (MOEX Russia Index) to restore to 2,320–2,400 if the global environment stabilizes,” Promsvyazbank analyst Mikhail Poddubsky said.

Alpari analyst Vladislav Antonov said that the Brent oil price collapsed 4.9% late on Tuesday after Saudi Arabia’s Energy Minister Khalid Al-Falih promised to raise crude production to 11 million barrels per day from the present 10.7 million barrels per day.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, said that the Brent oil price has recovered by about 0.4% from a recent loss in the morning. The MOEX Russia Index may edge up around 0.3–0.4% to 2,315 at opening despite a controversial external background, he added.

The benchmark is likely to consolidate later in the day awaiting new global drivers, he added.

Investors will also follow publication of July–September IFRS financial results of independent gas producer Novatek and grocery retailer X5 Retail Group among other corporate events.

End