Russian stocks to consolidate amid correcting oil prices

MOSCOW, May 11 (PRIME) -- The Russian stock market may open slightly higher and consolidate during the day on Friday due to a possible correction of oil prices seen at record highs, analysts said.

“The emerging upward trend of the RTS index may stall for today due to hints of cooling on the global markets including the crude market. Technical analysis assumes a possibility of an upward trend, but it is weak so far,” Olma senior analyst Anton Startsev said.

Vitaly Manzhos, senior risk manager at investment company Nord Capital, said the MOEX Russia Index may open about 0.2% higher at 2,315–2,320.

Promsvyazbank analyst Mikhail Poddubsky expects the index to consolidate within a 2,300–2,330 range backed primarily by sectors oriented to the internal market amid ruble strengthening.

Alpari analyst Vladislav Antonov said that the Brent oil futures have corrected down to around U.S. $77.3 per barrel as investors are cautions about a possible wave of profit taking.

Andrei Vernikov, deputy CEO for investment analysis of Zerich Capital Management, said that commodity market strategists at Bank of America Merrill Lynch expect crude to continue rise to $90–100 in 2019 due to strong demand, a fast decline in reserves and geopolitical problems in Iran, Venezuela and other major oil producers.

End