Russian stocks to grow as rising oil price supports market

MOSCOW, Aug 25 (PRIME) -- The Russian stock market should start the Thursday trade higher as the growth of oil prices above U.S. $100 per barrel should support the national shares once again, analysts said.

“We expect the start of trading in Russia to show a moderate increase of the MOEX Russia Index of no higher than 1% in the range of 2,250–2,275. The levels of 2,240 and 2,220 will act as the closest support, while 2,280 and 2,300 will become the resistance,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

Bogdan Zvarich, senior analyst at financial platform Banki.ru, said that the external background was positive for the Russian market – the Asian bourses gained up to 1%, the futures for the U.S. indices rose by up to 0.4%, and the closest futures for the Brent oil price increased by 0.4% to $101.6 per barrel.

“On Wednesday, the MOEX Russia Index lost 0.5% to 2,248, and investors’ wish to take profits in their long positions could have caused the market’s dynamics. Today purchases may prevail on our market again supported by improvements of the external conditions in general and by the fact that the Brent oil price stayed above $100 per barrel in particular,” Zvarich said.

Manzhos also said that in the second half of the day, the national market will focus on important political and corporate news. Among the foreign publications of macroeconomic statistics, the release of an adjusted preliminary estimate of the U.S. gross domestic product (GDP) in April–June should have the most serious impact on the Russian market, he said.

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