Russian stocks may open flat amid oil price above $45/bbl

MOSCOW, May 11 (PRIME) -- Russian stocks may open flat or slightly increase on Wednesday backed by the oil price remaining above U.S. $45 per barrel, analysts said.

“We expect the Russian stock market to open neutrally at the level of 1,885–1,890 at the MICEX index, without ruling out that this stock indicator will try to win back part of several last days’ losses if the foreign background improves,” Oleg Shagov, head of investment company Solid’s analytical department, said.

The influence of the key factors that have a significant impact on the behavior of the Russian stock market is close to neutral today at the beginning of the day, Shagov said. The U.S. leading stock index futures are slightly decreasing, while main Asian stock indicators are not showing single dynamics.

“The RTS index can return to the level of over 900 points at the start of trading today,” Olma senior analyst Anton Startsev said. Brent oil price consolidating over $45 per barrel may support investors’ interest in Russian stocks, he said.

Vitaly Manzhos, a senior analyst at Bank Obrazovanie, expects the MICEX index to open with an insignificant change, at around 1,885 points. The closest support levels will be 1,875 and 1,860, while 1,900 and 1,910 will act as resistance, he said.

Global oil prices, behavior of Western stock indicators, the ruble rate dynamics and economic statistical data will be the main drivers for the Russian stock market on Wednesday, Shagov said. Investors will also follow data on the U.S. oil reserves, as well as financial report by Russia’s largest bank Sberbank and operating results of retailer Magnit to be released later in the day.

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