Russian stocks may rise on oil price growth, positive background

MOSCOW, Aug 27 (PRIME) -- Russian stocks may increase at the opening on Thursday backed by oil price growth and a favorable external background, analysts said.

“We expect the Russian market to open at around 1,665 points at the MICEX index and with a growth of the RTS index,” Oleg Shagov, head of analytical department at investment company Solid, said.

A favorable external background can make the domestic stock market continue regaining the earlier losses, though excessive turbulence will remain, he said.

“The influence of the key external factors on the Russian stock market is moderately positive today at the start of the day, under our estimates,” Shagov said. Brent oil price rose to over U.S. $44 per barrel after an unexpectedly significant reduction of U.S. oil reserves. U.S. stock index futures are growing and leading Asian stock indices are demonstrating mostly positive dynamics after the Chinese central bank’s measures helped to stabilize the situation.

Promsvyazbank analyst Ilya Frolov expects the MICEX index to grow 0.5–0.8% at the opening, while the RTS index growth will exceed 1%.

“We expect the market to open with a significant increase of around 0.7% at the MICEX index, at the level of 1,670–1,675 points,” Vitaly Manzhos, senior analyst at Bank Obrazovanie, said. The closest support levels will be 1,665 and 1,650 points, while 1,680 and 1,690 points will be resistant levels, he said.

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