Russian stocks may rise amid oil price growth, positive backdrop

MOSCOW, Jun 16 (PRIME) -- The Russian stock market is likely to edge up at the opening on Friday thanks to a generally encouraging external background, but may correct down later in the day as investors can take profit from speculative long positions, analysts said.

“Purchases can prevail at the opening of the Russian market in light of the external background. The local market can continue its upward trend, but some participants can take profit from speculative long positions at the end of the day,” senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said.

“It can offset the morning’s growth and push the MOEX Russia Index below the 2,800 mark. The market has now approached the 2,800–3,000 range demonstrating the highest levels from last April… The 2,800 level… is the nearest resistance line,” he added.

If the market fails to consolidate above 2,800, it can trigger a wave of downward correction, Zvarich also said.

Zvarich sees the external environment as moderately positive with the main Asian indices rising by up to 0.8%, and core U.S. indices futures seen flat, and the Brent oil price adding 0.1% to U.S. $75.7 per barrel.

BitRiver financial analyst Vladislav Antonov said that the ruble is still pressured by falling supply of foreign currencies from the exporters, the budget deficit, and recovering imports.

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