Russian stocks to rise supported by oil price, favorable environ

MOSCOW, Dec 16 (PRIME) -- Russian stocks are likely to open higher on Friday supported by a rebound of oil prices and favorable external background, analysts said.

“We expect the Russian stock market to open in a positive way close to a 2,245 point mark of the MICEX index and suppose that the stock indicator is able to return to the level of its historical high during the day thanks to the favorable external background,” Oleg Shagov, head of investment company Solid’s research department, said.

The Brent oil price rose 0.44% to U.S. 54.26 per barrel as of 9.09 a.m. Moscow time, according to the ICE exchange.

The ultimate influence of key factors that provide a significant impact on behavior of the Russian stock market is moderately favorable at the beginning of the day. The oil price climbed above $54 per barrel, U.S. stock index futures are slightly rising, and main Asian floors are showing positive dynamics, Shagov said.

“We expect the market to open with a moderate increase of about 0.3–0.4% of the MICEX index close to a 2,245 point mark. The levels of 2,230 and 2,220 will become support, while the 2,250 and 2,260 point marks will act as resistance,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

In the first minutes of the trading session, the market will price in the improvement of the external background, and later the MICEX may rise to 2,250, he said.

“Demand is very likely to restore today. Worries about a fast increase of the U.S. Federal Reserve System’s rates may abate after the initial reaction to the Fed’s meeting. Stabilization of oil around the current level may exert some pressure on the ruble–U.S. dollar pair,” investment company Olma said in a research note.

At home, a central bank decision on the key rate and a news conference of the regulator’s Chairwoman Elvira Nabiullina will be in focus, Shagov said.

Manzhos said that investors will also track the U.S. housing construction data later in the day.

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