Russian stocks may rise in line with oil, global stocks

MOSCOW, Nov 7 (PRIME) -- Russian stocks may increase at the opening on Monday backed by oil price growth and rising global floors, analysts said.

“We expect the Russian stock market to open at the level of 1,965–1,970 points at the MICEX index, assuming that amid a favorable background this stock indicator will try to win losses suffered last week,” Oleg Shagov, head of investment company Solid’s research department, said. On November 3, the MICEX closed at 1,962.71.

The ultimate influence of key external factors that have an impact on the Russian financial market is moderately positive at the beginning of the day, he said. Brent oil futures are growing on the back of reports about an earthquake near the U.S.’ largest oil hub and Algeria’s statements that OPEC will take steps to stabilize the oil market at its next meeting, the analyst said.

The U.S. stock index futures are increasing after the Federal Bureau of Investigation reaffirmed its view that Hillary Clinton’s handling of her e-mails as secretary of state wasn’t a crime, Shagov said. The main Asian stock indicators are mostly demonstrating positive dynamics.

The further intraday dynamics of the stock market will depend on oil prices, behavior of Western stock indicators, ruble rate dynamics, and publication of economic statistics, Shagov said. Investors will also follow publication of financial results for the third quarter by Magnitogorsk Iron and Steel Works (MMK).

Olma senior analyst Anton Startsev expects that the RTS index will decline at the opening, as Russian stocks “will reflect deterioration of the foreign background that took place during the long holidays in Russia.”

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