Russian stocks to keep rising on high oil, strong ruble

MOSCOW, Apr 16 (PRIME) -- Russian stocks are likely to edge up at opening on Thursday following rising oil prices and the ruble, analysts said.

“Today a positive external environment is formed ahead of the opening of trading. The growth of oil prices and dynamics of foreign markets ensure a moderately positive vector for the main indices’ dynamics. We think that the MICEX index will grow within 1,680-1,690 during the day,” Promsvyazbank said in a research note.

On Wednesday, the MICEX rose 1.84% to 1,677.70 and RTS rose 3.63% to 1,052.33 as the Brent oil price soared about 5% to U.S. $62.8 per barrel by the end of session.

“This morning the Brent oil price crawled close to a $63 per barrel level. In fact, data on the U.S. …oil reserves was not only negative. Yes, the reserves…increased by almost 1.3 million barrels last week, but it was the lowest increase since January and it was significantly lower than the forecasted 3.6 million barrels,” Andrei Dirgin, head of Alfa-Forex analytic department, said.

The ruble broke through a psychologically important mark of 50 against the U.S. dollar and finished Wednesday’s trading at 49.70, supported by the oil price.

“Many people say that such a strong ruble is an unfavorable factor for the Russian economy. Yes, the budget includes the ruble rate against the U.S. dollar of 61.5 under an oil price of $50 per barrel…but if the crude market continues to rebound , the current surge of the ruble will not be a problem for the budget,” Alyona Afanasyeva, senior analyst at Forex Club, said.

The general background prior to the markets opening is positive with U.S. stock index futures rising and Asian floors showing positive dynamics.

During the day, investors will focus on the Russian President Vladimir Putin’s Direct Line Q&A session, when he may speak about many global economic issues.

Investors will also track U.S. jobless claims and new housing construction.

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