Russian stocks may open flat as oil price tries to rebound

MOSCOW, Jun 8 (PRIME) -- Russian stocks may open flat on Wednesday as the oil price is trying to rebound after the previous day’s losses, although it still restrains purchases, analysts said.

“The ultimate influence of the key external factors that have a significant impact on behavior of the Russian stock market is close to neutral at the beginning of the day, according to our estimates. Prices for Brent August futures are partially regaining yesterday’s losses prompted by an increase of oil reserves in the U.S.,” Oleg Shagov, head of investment company Solid’s research department, said.

The MICEX index may open slightly above 1,870 points and fluctuate there waiting for major news, like the outcome of the U.K. parliamentary elections, a European Central Bank monetary policy decision, and the U.S. congress’ hearing of a so-called Russian case, Shagov said.

“Yesterday’s contraction of futures for the Brent oil of more than 4% is very likely to remain a restraining factor for buyers at the Russian stock market today in the first half of the day,” Anton Startsev, a senior analyst at investment company Olma, said.

Bodgan Zvarich, an analyst at investment company Finam, said that the background prior to the opening of the Russian market is positive as the Brent oil price is growing and the U.S. stock index futures are rising after the Dow Jones and the S&P 500 had added about 0.2% on Wednesday.

But the local market is very likely to price in Wednesday’s oil price oil price regardless of the growth of the U.S. stock indices and restoration of oil prices. “As a result, sales will dominate the Russian market despite the positive morning background, which will lead to a further contraction of major indices,” Zvarich said.

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