Russian stocks seen growing in early trade on higher oil prices
MOSCOW, Aug 4 (PRIME) -- The Russian stock market will likely grow at opening on Friday on the back of an oil price increase and continuing weakening of the ruble, analysts said.
"We expect purchases to predominate today at the start of trade in Russian securities and market attempts to set new local highs. A better oil price situation and a higher global risk appetite will support the Russian market," Bogdan Zvarich, senior analyst at financial platform Banki.ru, said.
The oil market returned to growth after a short correction, with the Brent price increasing to U.S. $85.25.
"The entire fundamental background favors bulls, from statistics on the U.S. oil reserves to Saudi Arabia's decision to prolong oil output cut to September," Alexei Antonov, head of Alor Broker’s investment consulting department, said.
The ruble is under the pressure of high demand for foreign currency, including by importers. Foreign currency supply from exporters may be limited because of a decline of oil exports and low gas exports as compared with the period before February 2022. Gas sales amount to only 25% of the volume sold then, the analyst said.
Zvarich characterized the market mood as moderately positive, with the leading Asian markets growing by up to 0.9%, the key U.S. futures rising up to 0.4% after a decline on Thursday.
Antonov put the MOEX Russia Index estimate at 3,120–3,175. He said that profit taking is not ruled out at the end of the session.
End