Russian stocks seen growing slightly on oil price increase

MOSCOW, Nov 22 (PRIME) -- The Russian stock market is to open higher on Wednesday because of an increase of oil prices and neutral ruble dynamics, analysts said.

"The external background before opening of the trade can be qualified as neutral. Oil and metals got cheaper very marginally on the back of an increase of the U.S. dollar index by 0.12%," Alexei Antonov, head of Alor Broker’s investment consulting department, said.

"This is why we expect calm dynamics at the start of the day. The shares of exporters will remain under the pressure because of a strong ruble, while the issuers focused on the local market will gain advantage," Antonov said.

The sixth largest gold producer in Russia Uzhuralzoloto Group of Companies (UGC) will start trading on the Moscow Exchange on Wednesday. Vladislav Antonov, financial analyst at BitRiver said the asset was more attractive in comparison with fuel operator Eurotrans that floated the shares on Tuesday and fell more than 10% on investors' skepticism about potential profitability of the business.

He also said that the Brent oil blend price grew for three days ahead of Wednesday's trading session and exceeded U.S. $82 thanks to an increasing optimism before an OPEC+ alliance meeting. Strengthening of the U.S. dollar may limit the rise, he said.

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