Negative global mood, weak oil to push Russian stocks down

MOSCOW, Aug 2 (PRIME) -- The Russian stock market is likely to edge down on Thursday amid an evidently negative global environment and dramatic downward correction of oil prices, analysts said.

“We expect the MOEX Russia Index to open moderately lower, by 0.2-0.3% to around 2,310. The index will mirror the current worsening of the external environment. Later in the day it may gradually slide to 2,300 to price in yesterday’s significant drop in oil prices,” Vitaly Manzhos, senior risk manager at investment company Nord Capital, said.

Olma senior analyst Anton Startsev said that the RTS index may also continue correcting down.

He added that although the Brent oil price has stopped decreasing, the oil market, which influences Russian stocks strongly, are still under pressure of excessive supply threats stemming from OPEC’s higher crude output in July and rising U.S. oil inventories.

Manzhos said that the global environment is evidently negative with the Asian stock exchanges seen in the red territory and added that the present crude price rise is only a slight correction after a recent drastic fall to U.S. $73.3 per barrel of the Brent oil.

Russian traders will also follow financial results for April-June released by Magnitogorsk Iron and Steel Works (MMK) and power producer Lenenergo.

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