Russia stocks may edge up at opening on high oil, good environment

MOSCOW, May 13 (PRIME) -- Russian stocks are likely to open higher on Wednesday supported by high oil prices and positive environment, though performance of some shares may be undermined by Tuesday’s rebalance of the MSCI Russia index, analysts said.

“Today at the beginning of trading the RTS index may continue to grow following oil prices…During the day, preferred shares of Sberbank may be weaker than the market because they have been excluded from the MSCI Russia index, as well as common shares of Uralkali and the Moscow Exchange, whose share in the index were decreased,” Olma’s senior analyst Anton Startsev said.

The exclusion from the MSCI index’ composition usually prompts a negative reaction of investors, and the excluded shares tend to decrease, Oleg Shagov, senior analyst at investment company Solid, said.

The general background prior to the opening of the trading session is positive with the Brent oil rising 0.654% to U.S. $67.3 per barrel as of 9.02 a.m. Moscow time, U.S. stock index futures increasing and Asian floors staying in the green zone.

Russian stocks will also see some short-term support from U.S. Secretary of State John Kerry’s Tuesday meeting with President Vladimir Putin and Foreign Minister Sergei Lavrov, which was held in a positive key, ITInvest’s analyst Vasily Oleinik said.

Today investors will also track first January–March estimates of gross domestic products of leading countries and the Eurozone in general, the Bank of England’s report that may give an insight of the bank’s policy for July–December. U.S. data on export, import, retail sales, commercial stock and oil reserves will also be watched, Oleinik added.

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