Russian stocks to edge up on rising oil despite uncertainty

MOSCOW, Apr 6 (PRIME) -- The Russian stock market will demonstrate positive dynamics at the start of the trading session on Wednesday as rising oil prices will neutralize the uncertainty surrounding the forthcoming meeting on oil output freeze and ahead of a U.S. Federal Reserve System (Fed) minutes publication, analysts said.

“In spite of the ambiguous foreign background and uncertainty due to the publication the Fed minutes, the strengthening oil and good Russian macroeconomic figures will bolster the market,” Finam analyst Timur Nigmatullin said. He said that the purchasing managers’ index (PMI) published on Tuesday inspires a bullish mood on the market.

Oleg Shagov, head of investment company Solid’s analytical department, said that Brent prices again grew above U.S. $38 on the news that Saudi Arabia will raise prices, while the U.S. reserves declined unexpectedly, as reported by the API.

U.S. stock market futures are in the green zone, while premarket European trading signals positive dynamics at the opening, which makes for a positive background for the Russian trading session start, he said.

Finam analyst Timur Nigmatullin said that Asian markets are mostly falling as investors are cautious before the release of the Fed meeting protocol.

“Less than two weeks are left before the Doha meeting, and speculations regarding this pivotal topic will influence the market until the moment of truth approaches,” Pavel Salas, general director for Russia and CIS at brokerage company eToro said.

He said that good surprises are not ruled out but negative sentiment will prevail because output in Russia, Iran and Iraq is rising, while Saudi Arabia has started pressurizing Iran by blocking its oil exports, Salas said.

Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said that the MICEX will open with a 0.3–0.5% upward gap.

Nigmatullin said that oil and gas companies and retailers will probably be the market leaders.

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