Russian stocks may rise on strong oil, positive background

MOSCOW, Apr 21 (PRIME) -- Russian stocks may increase at the beginning of trade on Thursday supported by a strong oil price and a positive external background, analysts said.

“We expect the Russian stock market to open with higher at around 1,965–1,970 of the MICEX index, and suppose that the indicator, together with the RTS index, may hit new annual record highs during the day supported by a favorable external background,” Oleg Shagov, head of investment company Solid’s analytical department, said.

The Brent oil price rose 0.52% to U.S. $46.04 per barrel as of 8.58 a.m. Moscow time, according to the ICE exchange. The U.S. stock index futures are in the green zone, the Asian floors show mostly positive dynamics and the European session’s premarket indicate that main European stocks may rise at the beginning of trade. These factors make background for the Russian market moderately positive, Shagov said.

“The good condition of external markets prompts further growth of Russian blue chips and sets the mood for new MICEX index’ historical high of 1,970.45 today or tomorrow,” Promsvyazbank analyst Ilya Frolov said.

The oil price is rising as many players believe that the oil prices have bottomed out and a basis to balance supply and demand was laid, Pavel Salas, general director for Russia and CIS at brokerage company eToro, said.

“Brent easily survives stresses and focuses on an upward movement…Now, when OPEC blasted market trust…the players switched their focus to the U.S., and yesterday’s figures (of shale oil output fall of 4.4% to October 2014 lows) helped the market to strengthen its optimism,” Salas said.

Besides many financial reports that Russian and foreign companies are to publish today, investors will also focus their attention on the European Central Bank’s meeting on the monetary policy and a statement of the bank’s President Mario Draghi, Shagov said.

Investors will also track the U.S. jobless claims data and the Federal Reserve Bank of Philadelphia’s Manufacturing Business Outlook Survey, which may give some prompts about the U.S. Federal Reserve System’ future decision on monetary policy, Bogdan Zvarich, an analyst at Finam, said.

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