Russian stocks to increase at opening helped by firmer oil prices

MOSCOW, Sep 26 (PRIME) -- Russian stocks are likely to open higher on Tuesday thanks to support of rising oil prices, analysts said.

“We expect the Russian stock market to rise at opening at about 2,075 of the MICEX index and suppose that the stock indicator may continue trying to end its long period of consolidation and to set new six-month high figures,” Oleg Shagov, head of investment company Solid’s research department, said.

The background for the local market is moderately positive even despite contraction of the U.S. stock index futures and Asian floors. The Brent oil price rose above the U.S. $59 per barrel mark after some OPEC states called for restriction of oil production in Nigeria and Lybia, and after Turkey threatened to block oil transit from the Iraqi Kurdistan, Shagov said.

“Technical analysis allows us to diagnose continuation of an upward trend of the RTS index. Futures for the Brent oil are still above $59 per barrel, which forms a favorable external background for the Russian market. The ruble may also rise on the currency market at the beginning of trade due to the oil price dynamics,” Anton Startsev, a leading analyst at investment company Olma, said

But Vitaly Manzhos, senior risk manager at investment company Nord Capital, said that the Russian stock market may open flat, close to 2,070 of the MICEX index as activity of players may be restricted by a fall of the U.S. indices on Monday and a decrease in the U.S. stock index futures.

“The levels of 2,060 and 2,050 will become the closest support, while 2,070 and 2,080 will act as resistance,” Mahznos said.

Startsev also said that investors will track the release of the U.S. new housing construction figures and a speech by U.S. Federal Reserve System’s Chairwoman Janet Yellen.

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