Russian stocks may rise on neutral backdrop, strong crude

MOSCOW, Oct 19 (PRIME) -- The Russian stock market may rise at the opening on Tuesday, as the external background is benign, and crude oil and gas dynamics are positive today, analysts said.

“This morning the situation for our shares looks neutral. The market is unlikely to have a deep correction at the current oil and gas prices, and the bulls are restrained by the sideways dynamics of the MSCI Emerging Market Index,” Univer Capital’s chief analyst Andrei Vernikov said.

Vasily Karpunin of BCS Financial Group said that the Asian markets are trading mostly in positive territory prior to the Russian opening. S&P 500 futures increased 0.1% and Brent crude increased 0.2% and is trading around U.S. $84.5.

The opening of the MOEX Russia Index may be close to Monday’s closing level, Karpunin also said.

According to Alor Broker analyst Alexei Antonov, the Russian stock market may well cease the correction on the positive external background.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, said “We expect the MOEX Russia Index to open with a minimal deviation or a moderate increase of 0.1–0.3%, in the range of 4,245–4,260. In the first minutes of trading the index will show restrained morning improvement on the external background. Later, it is likely to move into a temporary consolidation state.”

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