Russian stocks to rise on favorable environ, high oil prices

MOSCOW, Sep 11 (PRIME) -- The Russian stock market may start the Monday trade session with an increase as the high oil prices coupled with a favorable condition of the external background support the national shares, analysts said.

“The MOEX Russia Index lost 0.8% to 3,143 last Friday, but today, we expect purchases to prevail in the Russian shares at the start of the day because the improvement of the mood of players on the foreign stock floors and the Friday growth of the energy market above U.S. $90 of the Brent oil price support that,” Bogdan Zvarich, senior analyst at financial marketplace Banki.ru, said.

The MOEX Russia Index also rolled back to the closest acceleration trend on September 8, which should provide technical support to the index, he said.

Zvarich also said that the leading Asian bourses were gaining up to 1.1% on Monday morning, the futures for the main U.S. indices were increasing by 0.2%, and the futures for the Brent oil blend was losing only 0.1% to around U.S. $90.6 per barrel. The impact from the external background is positive for the Russian market, he said.

BitRiver’s financial analyst Vladislav Antonov said that the recent growth of oil prices also provided significant support to the ruble’s exchange rate.

On September 10, Prime Minister Mikhail Mishustin said that the federal budget’s surplus reached 230 billion rubles in August, and that the non-energy revenue of the budget grew by 56.5% while the energy revenue recovered because of the high oil prices. This data signals an economic recovery, which may improve the country’s investment climate, Antonov said.

At the same time, analyst of Cifra Broker said in a research note that the 0.4% contraction of the Japanese index Nikkei225 makes the background for the market mixed, and that the Russian market may remain in a volatile state right until the Friday meeting of the central bank on its key rate.

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