Russian stocks to rise on positive environ, oil price dynamics

MOSCOW, Oct 1 (PRIME) -- Russian stocks are likely to open higher on Thursday as the rising oil price and favorable external background provide a positive background for the market, analysts said.

“We expect the Russian stock market to open close to 1,645 of the MICEX index and with a higher U.S. dollar–denominated RTS index, and think that the MICEX will try to settle above 1,650 due to the favorable external background,” Oleg Shagov, head of investment company Solid research department, said.

The Brent oil futures have risen 1.209% by 8.48 a.m. Moscow time, according to the ICE exchange, while U.S. stock index futures are rising and Asian floors are also showing positive dynamics.

“The background prior to the opening of the trading session is still positive. The growth of oil reserves in the U.S. did not prompt a decrease in energy resources’ prices, as they were supported by Chinese statistics, where NBS PMI edged up in September compared to an expected contraction, and higher uncertainty over Syria,” Anton Startsev, senior analyst at investment company Olma, said.

Wednesday’s approval by the Russian parliament of an air force deployment in Syria will be in the focus of investors’ attention as a source of uncertainty, and unexpected news from the country may shake the market, Solid’s Shagov said.

Another supporting factor is that valuations of the Russian market plunged in July–September, and investors hope for a rally in seasonally favorable September and October. Close dividend cut-offs on several shares with a combined dividend payout of 93 billion rubles also support the market, Promsvyazbank analyst Ilya Frolov said.

Investors will also track today releases of the U.S. ISM Manufacturing Index and jobless claims and PMI Manufacturing for the Eurozone, the U.K., Germany and France.

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