Russian stocks may fall on negative environment, low oil price

MOSCOW, Jun 21 (PRIME) -- The Russian stock market is likely to open flat and may decline during the day due to a bearish external background on Wednesday, analysts said.

“The ultimate influence of the key external factors that provide a significant impact on the Russian financial market is close to negative today. The August Brent oil price futures are fluctuating at around $46 per barrel, remaining under pressure ahead of publication of new U.S. crude inventories statistics,” Oleg Shagov, head of investment company Solid’s research department, said.

He added that the major U.S. indices futures and the Asian market are trading in the negative territory, while the European pre-market trading points to a lower start of trade. The Russian market is likely to open at around 1,855 of the MICEX index and may demonstrate a decline if the external environment remains bearish.

Olma senior analyst Anton Startsev said that technical analysis shows a possible deeper downward correction of the RTS index due to an unfavorable global background, including unstable oil.

He also added that the Russian market may be supported by the news that the U.S. government has taken a break in the adoption of an extended package of sanctions against Russia.

Investors in Russia may also follow decisions of oil company Lukoil’s board of directors, which plans a meeting.

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