Russian stocks may rise at opening with support from oil prices

MOSCOW, Jan 10 (PRIME) -- Russian stocks are likely to edge up at Wednesday opening as supported by consistently high oil prices, analysts said.

“Conditions of the external background prior to the start of trade in Russia may be seen as mixed. Still, the continuous growth of prices for oil contracts creates conditions for a positive start of the local trade,” Vitaly Manzhos, a senior risk manager at investment company Nord Capital, said.

The Brent oil price rose 0.51% to U.S. $69.17 per barrel as of 8.58 a.m. Moscow time, according to the ICE exchange.

U.S. stock index futures felling within 0.1% early in the day, while futures for gold lost 0.15%, Japan’s Nikkei225 contracted by 0.2%, and Hong Kong’s Hang Seng gained 0.2%, Manzhos said.

Manzhos said that he expects the market to open with an increase of about 0.2–0.4% of the MOEX Russia Index in a 2,230–2,235 range. The levels of 2,220 and 2,200 will remain the closest significant support, while 2,240 and 2,250 levels will act as resistance.

“We expect the Russian stock market to open in a 2,225–2,230 range of the MOEX Russia Index and suppose that the stock indicator will try to continue its New Year rally, which it has been experiencing for five consecutive trade sessions, if the background stays favorable,” Oleg Shagov, head of investment company Solid’s research department, said.

But Anton Startsev, a senior analyst at investment company Olma, said that the RTS index may ease at the beginning of the day as the activity of buyers is low on all markets in general.

“The VIX index, which reflects volatility on the U.S. stock market, has returned to the level above 10 points for the first time since the beginning of the year, which may be a sign of higher investor risk estimates connected to a recent growth of stock indices. At the same time, Brent futures are trading above $69 per barrel, which supports interest in securities of the Russian oil and gas industry,” Startsev said.

Shagov also said that investors will track news from the Finance Ministry’s 40 billion ruble OFZ bonds auction as it will show the degree of foreigners’ and carry-traders interest in ruble assets as possible new anti-Russian sanctions loom.

(57.0463 rubles – U.S. $1)

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