Russian stocks to firm slightly at opening in line with oil prices

MOSCOW, Oct 25 (PRIME) -- Russian stocks are likely to increase slightly on Wednesday morning supported by the latest increase of oil prices, analysts said.

“Today a rebound of the RTS index is possible as it may follow the oil prices. The statement of the American Petroleum Institute that the U.S. gasoline reserves significantly contracted over the past week triggered new activity at commodity exchanges,” Anton Startsev, a leading analyst at investment company Olma, said.

Vitaly Manzhos, a senior risk manager at investment company Nord Capital, said that the background prior to the start of trade in Russia is mixed with the U.S. stock index futures falling moderately, the Brent oil price rising by about 0.15% to U.S. $58.41 per barrel, and the Asian floors showing no common dynamics.

“Still, the increase of oil prices on Tuesday evening has a noticeable positive impact on the local stock market,” Manzhos said.

“We expect the market to open with an insignificant increase of about 0.2% of the MICEX index around 2,065. The levels of 2,060 and 2,050 will remain as the closest support, while 2,070 and 2,080 will act as resistance.”

Oleg Shagov, head of investment company Solid’s research department, also said that the MICEX index may open close to 2,065 and continue the day at around this level. “At the same time, the background of gradually rising oil prices makes the Russian stock market look slightly underpriced compared to oil,” he said.

Shagov also said that investors will track the news flow from the Russia Calling! investment forum, and releases of operating results of hydropower giant RusHydro, retailer Dixy Group, and coal producer Raspadskaya and of financial results of independent gas producer Novatek.

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