Russian stocks to rise getting momentum from oil prices

MOSCOW, Aug 1 (PRIME) -- The Russian stock market is likely to start trading on Tuesday with a slight increase as the recent growth of oil prices provides positive momentum for the market, analysts said.

“The MOEX Russia Index remains within the rally zone and continues its upward movement. The new target for the bulls is 3,100. The trading session may start today with an increase of 0.1–0.3%, and the index will spend the day in the range of 3,045–3,115,” BitRiver’s financial analyst Vladislav Antonov said.

The oil market is charged with expectations of a deficit of crude in July–September and supported by a global revision of the price forecasts by the investment houses. The Brent oil price rose to U.S. $85.25, Antonov said.

Promsvyazbank’s senior analyst Yegor Zhilnikov said that the favorable condition of the oil market, supported to a certain degree by the economic stimulation measures of the Chinese government, also helps the ruble. The fact that the oil prices maintain their growth potential provides a positive impact on the Russian market, he said.

Bogdan Zvarich, senior analyst at financial platform Banki.ru, said that the Russian market may start trading with an increase although the background sends mixed signals. The leading Asian bourses show mixed dynamics, the futures for the U.S. stock indices remain flat, and the closest futures for the Brent oil is in a slight downward correction this morning.

“The MOEX Russia Index grew by 2.2% on Monday and ended the trading session near 3,073. The purchases may prevail in the Russian shares at the start of the trading session today once more. As a result, the MOEX Russia Index will test the resistance level of 3,075, and sales may become more active here because some investors would like to take their profits in the long positions,” Zvarich said.

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