Russian stocks to rise at opening backed by oil price jump

MOSCOW, Feb 18 (PRIME) -- The Russian stock market will open higher on Wednesday encouraged by a significant oil price growth on Tuesday evening, analysts said.

“We expect the market to open with a noticeable increase, by up to 1%, in a range between 1,805 and 1,810 on the MICEX. The levels of 1,790–1,780 will be the closest support and 1,820–1,840 will be the resistance zone,” Vitaly Manzhos, analyst at Nord Capital, said. “In the first few minutes of the session, the local market will reflect the evening’s growth in oil prices.”

On Tuesday, Brent jumped to U.S. $62.94 per barrel, a record high for 2015. On Wednesday at 9.20 a.m., Moscow time, oil pared the gains 0.38% to $62.15.

In the second half of the trading session, the Russian market mood will depend on geopolitical news, Manzhos said.

An OSCE mission is unable to enter the Ukrainian city of Debaltseve, but there is information that assaults in Ukraine have continued even after the separatists had signed a truce agreement. “The situation in Ukraine remains unstable, the peace plan which was approved in Minsk has not been followed, the geopolitical factor may hold down the activity of stock market buyers,” Olma’s senior analyst Anton Startsev said.

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