Russian stocks to rise on OPEC+ decision, favorable environ

MOSCOW, Oct 6 (PRIME) -- The Russian stock market will grow at opening on Thursday supported by a positive foreign markets mood and an oil price rise in the wake of the OPEC+ decision to cut its oil production in November, analysts said.

“On Wednesday, the MOEX Russia Index lost 0.8% falling to 2,030. But during the session the market dipped below 2,000 and managed to regain the majority of losses until the end of the day. We expect our market to restart the upward dynamics today, and the MOEX Russia Index may gain back the losses of yesterday and test the resistance line of 2,050,” financial platform Banki.ru senior analyst Bogdan Zvarich said.

The external background is favorable for the market, as the leading Asian bourses gained up to 1.5%, the futures for the main U.S. indices rose by 0.5%, and the closest futures for the Bren oil held above U.S. $93 per barrel, Zvarich said.

“The technical picture for the MOEX Russia Index remains positive as long as the indicator stays above 2,000,” head of investment consulting department of Alor Broker Alexei Antonov said.

The oil market’s reaction to the decision of OPEC+ was weak, but the price should still be expected to climb above $100 gradually to help the oil companies outperform the market in the mid-term, Antonov said.

“We expect tradingin Russia to start with an increase of 0.3–1.0% of the MOEC Russia Index in the range of 2,035–2,050. The levels of 2,030 and 2,010 will act as the closest support, while 2,060 and 2,080 will become the resistance. The positive condition of the external background creates drivers for a moderate increase of the MOEX Russia Index at the start of trade,” Algo Capital’s senior risk manager Vitaly Manzhos said.

Zvarich also said that investors will focus on statistics on industrial orders in Germany, retail said in Europe, and U.S. jobless claims.

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