Russian stocks to rise at opening as oil price soars

MOSCOW, Nov 7 (PRIME) -- Russian stocks are likely to spike at opening on Tuesday following a jump in oil prices, analysts said.

“Today an upward rebound of the RTS index is possible at the beginning of the day as traders simply cannot ignore such a noticeable increase in the world oil prices that happened over the long weekend in Russia, with Brent rising above $64 per barrel due to a higher political uncertainty in Saudi Arabia, where several members of the royal family were arrested,” Anton Startsev, a leading analyst at investment company Olma, said.

Oleg Shagov, head of investment company Solid’s research department, said that the background prior to the opening of the Russian stock market is positive with the U.S. stock index futures rising, the Asian floors showing positive dynamics, and oil prices jumping above U.S. $64 per barrel.

“We expect the Russian stock market to open around 2,090 of the MICEX index today, and suppose that the indicator may again try to break through the resistance level of above a psychologically important mark of 2,100 thanks to the favorable external background,” Shagov said.

Vitaly Manzhos, a senior risk manager at investment company Nord Capital, also said that the MICEX index may grow about 0.3–0.5% to 2,090 at the beginning of the day.

“After a positive start of trading, the MICEX index is likely to grow to 2,100, which is its closest goal and the closest resistance level. The movement will be supported by a strong Monday increase in the price of oil futures,” Manzhos said.

Shagov also said that local investors will track the release of financial results of power producer Unipro, a dividend recommendation to be made by the board of directors of oil company Tatneft, and also news from the meeting of the board of directors of fertilizer producer Uralkali, which is to recommend shareholders approve delisting of the company’s shares.

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