Russian stocks to rise on growing oil price, high US closing

MOSCOW, Apr 9 (PRIME) – The Russian stocks are likely to rise on Thursday morning as the market will price in Wednesday’s growth of the U.S. stock indices and an increase in oil prices, analysts said.

“We expect the MOEX Russia Index to open 0.5–1.2% higher in the range of 2,685–2,700. The levels of 2,670 and 2,650 will act as the closest support, while 2,720 and 2,740 will become the resistance…Taking into account the great closing of the U.S. stock market, the external background for the Russian stock market may be seen as positive,” senior analyst of Algo Capital Vitaly Manzhos said.

The Brent oil price gained about 1.8% on Thursday morning.

Alor Broker analyst Alexei Antonov also said that the market will price in the Wednesday increase of the U.S. stock indices, but the oil output reduction discussion is still the major issue. Russia clearly announced its readiness to reduce the output by 1.65 million barrels a day, but it is unclear whether Saudi Arabia would agree to take March production as the point of reference and whether the U.S. is ready to join the OPEC+ decision.

“The situation is developing towards all countries having to reduce their output. But they can do it voluntarily now, preventing the oil prices from falling below U.S. $25 per barrel, or they can do it later with huge losses when the oil price falls below $20,” Antonov said.

Veles Capital analyst Yelena Kozhukhova said that the background for the Russian market is neutral as the European bourses experienced a slight downward correction with a trend to recover on Wednesday, while the mood on the U.S. bourses was optimistic, and the state of the oil market was unclear prior to the OPEC+ talks.

“On Thursday, activity at the Western bourses will start to dwindle before the Easter holidays, while the Russian market will be far from tranquil as the mid-term fate of oil prices and the ruble may be decided this week,” Kozhukhova said.

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