Russian stocks may rise on oil price rebound, global market growth

MOSCOW, Mar 28 (PRIME) -- The Russian stock market may open slightly higher on Tuesday due to a mildly positive external environment and a bounce back of the oil prices, analysts said.

“The ultimate influence of the key external factors that provide a significant impact on the Russian financial market is close to positive today. The May Brent crude futures have edged up above $51 per barrel on the back of forecasts that global demand for the “black gold” is likely to increase in the second half of the year,” Oleg Shagov, head of investment company Solid’s research department, said.

“The Brent oil price has formed a temporary resistance level of $53 on the news released on March 26 that a joint OPEC and non-OPEC ministerial committee responsible for monitoring compliance with a global agreement to reduce oil output suggested that the agreement should be prolonged for another six months,” Andrei Vernikov, deputy CEO for investment analysis of Zerich Capital Management.

Shagov added that the Russian market may win back previous losses, if the global background maintains upward dynamics.

“Decisions of the state-run companies on the share of net profit to be allocated for dividends… is very important from the fundamental point of view. At the same time the current price levels are attractive for building long-term portfolios amid declining interest rates,” Anton Manayev, head of the trade operations department at investment company Olma, said.

The major U.S. indices futures are rising, the Asian markets also look bullish while the European premarket trading points to the possibility of a rise in early trade.

In Russia, investors may also be interested in Central Bank Chairwoman Elvira Nabiullina’s and top Finance Ministry officials’ speeches at the Association of Russian Banks meeting.

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