Remaining global uncertainty to pressure Russian stocks

MOSCOW, Aug 7 (PRIME) -- The Russian stock market may decrease slightly at the opening and consolidate during the day on Wednesday thanks to persisting global uncertainty, analysts said.

“We expect the Russian stock market to open modestly lower, by around 0.3% at 2,675… and to consolidate later in the day. There are no certain drivers for any movement on the market,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

Olma senior analyst Anton Startsev sees consolidation of the RTS index around the 1,300 mark as the most probable scenario.

Concerns over a trade war between the U.S. and China softened after the U.S. White House economic advisor Larry Kudlow said that President Donald Trump “would like to continue negotiations…. and make a deal,” Startsev said.

At the same time, the Brent crude price is seen below U.S. $59 per barrel which may hurt demand for domestic energy stocks, he added.

Solid Broker analysts said that the external background is neutral with Chinese floors trading slightly lower and crude prices trying to recover, but uncertainty persists.

Investors in Russia will also follow publication of RAS financial results for July and January–July of top bank Sberbank among other corporate events.

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