Russian stocks to rise early on falling ruble, stable oil prices
MOSCOW, Oct 26 (PRIME) -- The Russian stock market is likely to start Thursday's trading session higher as the slight contraction of the ruble and stability of the global oil prices should support the national market, analysts said.
“The MOEX Russia Index grew by 0.01% to 3,265.28, while the RTS Index gained 0.11% to 1,103.60. Fluctuations on the oil and currency markets are holding the MOEX Russia Index in a sideways trend. This background means it will stay in a narrow range of 3,237–3,270. The ruble opened trading with a contraction, and the index has a chance to test the level of 3,283 once again,” Vladislav Antonov, financial analyst of BitRiver said.
The oil price stands around U.S. $90 per barrel on support from geopolitical risks. Investors are also focused on the release of the U.S. gross domestic product statistics. On the currency market, foreign currency sales by exporters is shrinking, which shows that the bulk of money for the tax payments has already been converted, and the U.S. dollar can firm after the tax period has ended, Antonov said.
“We expect a moderately positive mood to prevail on the market today. The MOEX Russia Index may start trading in the range of 3,250–3,330 and test the annual highs. We expect interest in blue chips to pick up. The internal sectors should experience it because concerns about the key rate increase have faded away, while the oil sector will feel stabilization of the situation on the currency market and the impact from the positive recommendations of the board of directors of Lukoil regarding dividends,” Promsvyazbank analyst Yevgeny Loktyukhov said.
But Vladislav Silayev, senior trader at managing company Alfa-Capital, said that the external background has worsened for the Russian market.
“The Asian markets mainly switched to sales, and the futures for the U.S. index S&P 500 are down in premarket trade. The oil market also failed to hold to the growth momentum. The Brent oil price weakened to $89.83 per barrel. The gold price grew to $1,986 per ounce, and the prices for silver and platinum rise again,” Silayev said.
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