MOSCOW, Oct 18 (PRIME) -- Russian stocks are likely to open higher on Tuesday on support from a favorable external background and slightly higher oil prices, analysts said.
“We expect the Russian stock market to open in a positive way close to a 1,960 level of the MICEX index, and suppose that the MICEX index may rebound if the background remains favorable because the index is technically oversold after four consecutive days of contraction,” Oleg Shagov, head of investment company Solid’s analytical department, said.
The Brent oil price has risen 0.541% to U.S. $51.80 per barrel as of 9.02 a.m. Moscow time, according to the ICE exchange, while the U.S. stock index futures and Asian floors are rising.
Anton Startsev, a senior analyst at investment company Olma, said that the world markets, including commodities, creates grounds for growth of the RTS index at the beginning of the day.
“Still, technical analysis points to a possibility of a deeper downward correction (of the RTS index),” he said, adding that the flow of reports from Western companies is “pleasant.”
The market will track reports of Blackrock, Johnson&Johnson, Philip Morris, and Goldman Sachs later in the day.
Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said that the local market is most likely to price in the improvement in the external background at the beginning of the day.
“We expect the market to open with a moderate increase of about 0.3% in the range of 1,960–1,965 points of the MICEX index. The levels of 1,955 and 1,950 will remain support levels, while 1,970 and 1,980 will act as resistance levels,” Manzhos said.
Among local events that may have an impact on the market, Shagov noted publications of operating results of gold producer Polymetal International, retailer X5 Retail Group, and household appliances retailer M.Video. National flag carrier Aeroflot’s investor day may also be of interest to investors, Shagov added.
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