Russian stocks can fall slightly on oil dip, neutral background

MOSCOW, May 27 (PRIME) -- The Russian stock market will likely see a small downward gap on Friday at the session opening because of an oil price downward correction, but this effect will be balanced by a neutral background on foreign markets, analysts said.

“A certain downward correction is possible today in the start of the trade. The optimism of oil market traders was not enough to ensure a Brent futures’ consolidation above U.S. $50 per barrel, a downward correction of fuel prices will cool down the Russian market,” Olma leading analyst Anton Startsev said.

Brent retracted 0.77% to $49.21 per barrel at 9:03 a.m., Moscow time.

U.S. stock market futures are little changed, Asian markets are showing a mixed dynamics, which will ease the negative impact from falling oil prices and make the overall background to the Russian trading session opening close to neutral, Oleg Shagov, head of investment company Solid’s analytical department, said.

The MICEX is expected to open at about 1,915, Shagov said.

He said that the activity of market participants will be lower than usual as they will expect speeches by Chairwoman of the U.S. Federal Reserve System Janet Yellen and forthcoming long holidays in the U.S.

A release of the U.S. gross domestic product data will strongly affect the trends at the Russian market on Friday, Shagov said.

Investors will also pay attention to meetings of shareholders of Sberbank, Yandex, Magnitogorsk Iron & Steel Works (MMK), and of boards of directors of Russian Grids, Federal Grid Company of Unified Energy System (FGC UES), Mostotrest and PIK Group, Shagov said.

End