Russian stocks may edge down on oil price, foreign markets drop

MOSCOW, Nov 15 (PRIME) -- The Russian stock market will likely open with a small downward gap on Wednesday amid a decrease in oil prices and foreign markets indices, analysts said.

“The MICEX index will remain in a short-term flat trend by Wednesday but a full-scope correction can start shortly,” Alpari senior analyst Anna Bodrova said.

Oleg Shagov, head of the investment company Solid’s research department, said that the influence of external factors on the market is moderately negative as Brent futures descended to U.S. $61.4 per barrel after publication of statistics by the American Petroleum Institute (API). U.S. stock market futures and Asian markets are falling. The European premarket signals a downward trend later in the day.

Bodrova said that several Russian corporate stories, such as Sberbank, expected to make public its dividend coefficient, Surgutneftegas, Novolipetsk Steel (NLMK) and Gazprom, are significantly supporting the MICEX.

Shagov said that the MICEX will likely open at about 2,165 and will continue the downward correction.

Sberbank, Gazprom Neft and Cherkizovo will post their financials and Magnit shareholder Lavreno Limited will initiate a common share sale for $700 million in rubles, which are expected to be the main corporate events of Wednesday.

The ruble can be supported by taxes on insurance premiums which will take 500 billion rubles from the market on Wednesday, he said.

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