Stocks to rise in early trade on external background support

MOSCOW, Apr 21 (PRIME) -- The Russian stock market is likely to start Thursday’s trading higher on rising foreign bourses and oil, analysts said.

“The global markets’ mood on Thursday morning is positive. The leading Asian stock floors rise by up to 1.3% excluding the market of China, which fell by 1.2% on concerns about the impact of the coronavirus on the country’s economy,” Bogdan Zvarich, senior analyst at financial supermarket Banki.ru, said.

The futures for the Brent oil grew by 1%, and the futures for the U.S. stock indices gained up to 0.6%. This means that purchases should prevail in the Russian shares and the ruble at the beginning of trade, but the global markets may experience mass sales if a speech by U.S. Federal Reserve System’s Chairman Jerome Powell triggers worries about toughening of the U.S. monetary policy and its impact on the economy of the country, Zvarich said.

Investment company Algo Capital senior risk manager Vitaly Manzhos also said that the background for the Russian stock market was positive, even though the factor still has no ultimate impact on the market.

“We expect the MOEX Russia Index to change by up to 1.5% at the start of the main trading session in the range of 2,300–2,360. The levels of 2,280 and 2,250 will act as the closest support, while 2,370 and 2,400 will become the resistance. Given the positive external background, the conditions support prolongation of Wednesday’s upward movement of the MOEX Russia Index into the range of 2,370–2,400,” Manzhos said.

In the second half of the day, only the important external political news and Powell’s speech could have a serious impact on the MOEX Russia Index.

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