MOSCOW, Mar 28 (PRIME) -- The Russian stock market is likely to grow on Tuesday morning as the momentum from a serious increase of oil prices on Monday will still drive the market up, analysts said.
“The Russian shares may try to continue upward dynamics at the start of trade today in spite of a morning downward correction on the market of energy sources. This should allow the MOEX Russia Index to entrench above 2,400 and make another step toward the closest resistance level of 2,500. It is worth noting that the Russian market broke away from the long-term descending trend that began from the highest levels of October 2021, which shows a possibility of an upward recovery wave for our market,” Banki.ru’s senior analyst Bogdan Zvarich said.
The background for the Russian market is positive. The leading Asian bourses gained up to 0.8%, the futures for the U.S. indices grew by 0.1%, and the Brent oil price lost only 0.5% after a considerable expansion on Monday, Zvarich said.
BitRiver financial analyst Vladislav Antonov said that the MOEX Russia Index grew on Monday with the rising oil prices being the main market driver. The Brent oil price gained 4.22% to U.S. $78.06 per barrel because of the U.S. dollar’s weakening and a report of Reuters that the International Chamber of Commerce’s arbitration considered exports of oil from the Iraqi Kurdistan to Turkey through the Kirkuk–Ceyhan pipeline illegal, cutting 450,000 barrels per day of Iraqi oil exports.
The Brent price is to continue rising to at least $79.00–79.25 per barrel, and the goal for the MOEX Russia Index right now is the level of 2,480, Antonov said.
“We think that the MOEX Russia Index may continue growing today and reach 2,488, the highest level since last September. We expect demand for the shares of oil companies, Sberbank, and ALROSA to stay,” Alexei Golovinov, head of the research and expertise center of Promsvyazbank’s department for economic and sectorial analysis, said.
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