Russian stocks to rise as external background supports purchases

MOSCOW, Aug 12 (PRIME) -- The Russian stock market is likely to open with a slight increase on Thursday as the external background provides a moderate positive momentum for the national market, analysts said.

“The external background prior to the start of trade in Russia can be considered moderately positive. The MOEX Russia Index may test the strength of the 3,900 resistance level,” Andrei Kochetkov, leading analyst for global research at Otkritie Broker, said.

Asian indices are mostly in the green zone, as well as the majority of contracts for commercial metals. Risky currencies are strengthening their positions, while the U.S. dollar is under pressure, Kochetkov said.

Yevgeny Loktyukhov, head of Promsvyazbank’s department of economic and sectorial analysis, said that the Brent oil price should switch into the $72–74 range soon.

“The weekly data of the U.S. Department of Energy on the energy sources market in the country did not provide noticeable support to oil prices as they turned out to be worse than expected. … Still, the data confirmed that demand for oil in the U.S. remains high and ensures loading of local refineries. As of the Wednesday morning, futures for the Brent oil is around $71.5 waiting for monthly reports of the International Energy Agency and OPEC,” Loktyukhov said.

Alor Broker’s senior analyst Alexei Antonov said that the background for the market was neutral, as futures for the U.S. indices were falling by an insignificant margin, prices for commercial metals were mixed, and the oil price had frozen close to U.S. $71.4 per barrel.

“Judging by the fact that the majority of demand (on the Russian market on Wednesday) was focused on highly-liquid shares, the Russian market is getting fresh money, and it is likely coming from foreign investments. It is hard to say for how long foreigners will continue buying Russian shares. Today, the background for the Russian market is neutral,” Alor Broker’s senior analyst Alexei Antonov said.

Kochetkov also said that later in the day, investors will focus on Russia’s release of gross domestic product (GDP) in April–June, releases of financial and operating results for April–June by discount retailer Fix Price and X5 Retail Group, gold producer Polyus’ release of operating results, and the dividend recommendation that the board of directors of aluminum giant UC RUSAL is to make.

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