Russian stocks may rise backed by oil price, positive background

MOSCOW, Dec 20 (PRIME) -- The Russian stock market is likely to open with growth and try to win back previous losses on Wednesday supported by stronger oil and generally positive global background, analysts said.

“We expect the Russian stock market to open (slightly higher) at around 2,120 of the MOEX Russia Index and assume the benchmark may attempt to win back previous days’ losses,” Oleg Shagov, head of investment company Solid’s research department, said.

He added that the global environment looks moderately positive with Brent oil futures rising to a $63.9 per barrel mark supported by a report of the American Petroleum Institute (API) witnessing a further reduction in the U.S. crude stocks.

Olma senior analyst Anton Startsev said he expects market activity to remain low due to uncertainty linked with the U.S. taxation reform.

Shagov also said that Russia’s Finance Ministry will hold two auctions to sell OFZ government bonds for the first time after the recent interest rate cut to 7.75% by the central bank and an interest rate hike by the U.S. Federal Reserve. Demand will demonstrate interest of non-residents and carry traders to ruble-denominated securities in the new conditions.

Grocery retailer Dixy Group plans to hold an extraordinary general meeting of shareholders to discuss delisting from the Moscow Exchange, which may also influence the Russian market.

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