Russian stocks to rally on oil price rise, ECB low rate

MOSCOW, Jan 22 (PRIME) -- Russian stocks may continue on Friday the growth seen on Thursday in the evening because oil prices have risen to U.S. $30 again, and the retention of low European Central Bank (ECB) interest rates supports investors’ optimism, analysts said.

“A continuation of the increase which has emerged is possible in the beginning of the trade today. Expectations of stimulating measures from the ECB have become a factor of some revival on global markets including the oil one – Brent futures again approached a psychological threshold of $30,” investment company Olma’s senior analyst Anton Startsev said.

The ECB kept the interest rates at record lows, as expected, he said. Chairman Mario Draghi said that the rates will remain low for a long period.

As of 9:20 Moscow time on Friday, Brent rose 3.32% to U.S. $30.22 per barrel. The Russian market had no time to reflect the rising oil price on Thursday in the evening, and the asset price will receive a noticeable boost in the morning, UFS IC analyst Alexei Kozlov said.

The U.S. stock market futures are rising, key Asian indices are rallying as well, which will support the positive trend in Russia, Startsev said.

The attempts of the People's Bank of China to stabilize the stock market and currency exchange situation are welcomed by market participants, Kozlov said.

As a result of all these factors, the MICEX is seen rising about 1% to 1,695 at the opening with the closest support at 1,675 and 1,660 and resistance at 1,700 and 1,710, Bank Obrazovanie’s senior analyst Vitaly Manzhos said.

The oil and gas sector and Sberbank’s shares will likely outperform the market, Ilya Frolov, a senior analyst at Promsvyazbank, said.

The European business activity statistics and the U.S. secondary housing sales will influence the Russian market to a certain degree later on Friday, Startsev said.

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