Russian stocks to gain on oil price, stronger foreign markets

MOSCOW, Oct 16 (PRIME) -- The Russian stock market will open in the green zone on Friday because of higher oil prices and rising foreign markets, analysts said.

“Our estimates show that the influence of the key factors which significantly affect the behavior of the Russian financial market is moderately positive today at the start of the day,” Oleg Shagov, head of investment company Solid’s analytical department, said.

Brent added 0.86% to U.S. $50.16 per barrel at 8.57 a.m., Moscow time. American stocks futures are easing, but not erasing Thursday’s growth; Asian key markets are rallying, all these factors will contribute to the Russian market increase, Shagov said.

The MICEX index is expected to edge up 0.5% at the opening to 1,740. The closest support levels are 1,730 and 1,720, while 1,750–1,760 will be resistance zones, Vitaly Manzhos, senior analyst at Bank Obrazovanie, said. The RTS will grow on Friday, Shagov said.

Banks have likely started to replace exporters as investors’ favorites in medium term because of strengthening of the ruble, Manzhos said.

Statistics releases in Europe and the U.S. can push the Russian stock market into a volatile consolidation in the second half of the day, Manzhos said.

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