Stocks to open higher on oil price rise, strong Gazprom report

MOSCOW, Aug 31 (PRIME) -- The Russian stock market can edge up at opening on Tuesday pushed higher by the oil price growth and a strong financial report for January–June by Gazprom, analysts said.

"We expect the MOEX Russia Index to open with a moderate increase of 0.1–0.3%, at 3,930–3,940. The levels of 3,920 and 3,900 are the closest support, 3,950 and 3,960 remain significant resistance," Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

Alor Broker senior analyst Alexei Antonov said that the market continued to price in a positive external background set by a speech of U.S. Federal Reserve System (Fed) Chairman Jerome Powell. Many Russian securities were supported by financial reports, with Gazprom's January–June statement being the most important, the analyst said.

Gazprom was also supported by the gas prices setting a new record of more than U.S. $600 per 1,000 cubic meters in Europe, he said.

Oil traded at about $72 on Tuesday morning propped up by the Ida Hurricane and speculations that the OPEC+ would cut the volume of output increase, Antonov said.

The aluminum and nickel prices increased by more than 2%, which will be beneficial for the metal companies, the analyst said, adding that the rumors that the government will abolish the metal export duties also boost the prices of ferrous metals producers, Antonov said.

According to Manzhos, later in the day the Russian market would be guided by the oil futures and the U.S. stock market opening trend. The U.S. Consumer Confidence Index (CB) may affect the Russian market to some extent.

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