Russian stocks can open neutrally, then follow crude prices

MOSCOW, Sep 6 (PRIME) -- The Russian stock market can demonstrate no significant movement at the opening on Monday and will follow crude prices later in the day as the U.S. market is closed for Labor Day, analysts said.

“The Russian stock market is expected to open with no significant changes. Oil prices have continued their decrease from the upper bracket of a 2-month downward channel, but we cannot speak about a steep fall,” Andrei Vernikov, head of investment analysis department of Investment Group Univer, said.

Saudi Arabia has reduced its oil prices for Asian customers, which can be additional negative information for crude investors, he added.

Vernikov also expects the Russian central bank’s board of directors to raise the key interest rate to 7% at a meeting later this week.

Alor Broker analyst Alexei Antonov agreed that the Russian stock market is unlikely to continue its previous upward dynamics in light of the crude prices dynamics with the Brent oil price falling around 1.5% to U.S. $71.5 per barrel.

He added that the market can be less active on Monday due to celebration of Labor Day in the U.S and that crude will be the main guidance for local stocks.

Russian traders can also follow April–June financial results released by Mother and Child maternity hospital and clinic chain, operated by MD Medical Group.

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