Russian stocks to firm as oil price growth supports local market

MOSCOW, Jan 11 (PRIME) -- The Russian stock market is likely to start Thursday's main trading session slightly higher as growth of the Brent oil price supports the local players, analysts said.

Alor Broker senior analyst Alexei Antonov said that foreigners again started selling the Russian shares as the NATO–Russia talks did not bring strong positive drivers to the market, and the technical condition of the MOEX Russia index does not favor the bulls. An upward technical rebound that started in mid-December 2021 did not allow the market to hold above 3,800, and the benchmark can now fall to 3,500.

“The decrease of the U.S. stock market could become a reason for that, and the situation there is not good. The global market is again under the pressure of the coronavirus fears ( new COVID-19 cases in the U.S. and the U.K. grow fast), and expectations of toughening of the monetary policy by the U.S. Federal Reserve System,” Antonov said.

“In this situation, oil provides main support to the ruble assets. The shares of oil companies outperformed the market on Monday, and we expect a similar situation today.”

Vitaly Manzhos, senior risk manager at Algo Capital, said that the background for the Russian stock market was mixed in the morning as the Asian bourses fell, but the Brent oil price gained about 0.5%. The MOEX Russia Index may rise at the opening of the main trading session as it would price in the higher oil prices, but it should switch into consolidation later, he said.

“Taking into account the correctional growth of the U.S. markets that happened after the closure of our market on Monday and the Tuesday morning attempts of the energy market to grow, we expect purchases to prevail in the Russian shares at the start of trade. As a result, the MOEX Russia Index may regain losses of the previous session and climb above 3,750,” Bogdan Zvarich, senior analyst at financial supermarket Banki.ru, said.

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