Russian stocks seen growing on oil price rise, ruble weakening

MOSCOW, Dec 20 (PRIME) -- The Russian stock market is to open higher on Wednesday on the back of an increase of oil prices and weakening of the national currency, analysts said.

"We expect attempts of the Russian market to continue the recovery today at the start of trade. Better f investors' appetite to risky assets on the markets across the world and an increase of the fuel market to the upper limit of a range of U.S. $75–80 per barrel on the Brent oil will support the Russian shares and favor their increase," financial marketplace Banki.ru’s senior analyst Bogdan Zvarich said.

BitRiver’s financial analyst Vladislav Antonov said that the Brent rose 1.68% on Tuesday to $79.32 per barrel on the back of investors' worries over possible disruptions in transportation across the Red Sea because of the attacks of the Houthi rebels on merchant ships in the region. Weakening of the U.S. dollar supported the market additionally, the analyst said.

The Brent price remained near the closure level on Wednesday in the morning, Zvarich said.

According to Antonov, the ruble is under pressure amid a continuing oil price volatility, a traditional year-end increase in budget spending and cash and non-cash foreign currency demand rise among the households. The ruble is to remain near the current level in the short term.

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