Russian stocks to rise in line with oil prices, foreign background

MOSCOW, Nov 16 (PRIME) -- Russian stocks are likely to edge up at opening on Wednesday supported by the oil price growth and favorable external background, analysts said.

“Yesterday’s increase of the RTS index and the ruble may continue today at the beginning of trading in line with oil prices,” Anton Startsev, a senior analyst at investment company Olma, said.

Oleg Shagov, head of investment company Solid’s research department, said that the background prior to the start of the trading session is moderately positive, as oil prices grew above U.S. $47.

The U.S. stock index futures are rising marginally, major Asian floors are showing mostly positive dynamics, and the European session’s premarket data signals growth of European markets at the start of the day, Shagov said.

“We expect the Russian stock market to open in near 2,030 of the MICEX index and suppose that the stock indicator will be able to regain this week’s losses later in the day supported by the favorable external background,” Shagov said.

Timur Nigmatullin, an analyst at investment company Finam, said that the MICEX index will grow by about 0.5% in the first half of the day, and one of the key growth factors will be diminishing risks that the ongoing corruption scandal involving now-former Economic Development Minister Alexei Ulyukayev will hurt privatization and general investment attractiveness of Russian assets significantly.

Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said that the local market is very likely to price in the improvements on the oil market.

“We expect the market to open with a significant increase of about 0.4% of the MICEX index close to a 2,025 point mark. The levels of 2,010 and 2,000 will remain as support, while the 2,040 and 2,050 points will act as resistance levels,” Manzhos said.

Shagov said that among local events investors will track results of oil and gas pipe maker TMK, retailer Dixy Group, and meat producer Cherkizovo Group later in the day.

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