Russian stocks may open flat or rise slightly on neutral conditions

MOSCOW, Aug 31 (PRIME) -- Russian stocks may open flat or increase a bit at the opening on Wednesday, because external conditions are expected to be neutral, analysts said.

“The ultimate influence of key external factors that have an impact on the Russian financial market is likely to be neutral early in the day, according to our estimates. Brent prices are rising a bit due to statements of Iraq that it is ready to join a possible agreement on an oil output freeze and a U.S. dollar weakening on the global forex market,” Oleg Shagov, head of investment company Solid’s research department, said.

“We expect the Russian stock market to open flat at around 1,985–1,990 at the MICEX index, assuming that intraday dynamics of the Russian stock market will depend on dynamics of oil prices and western stock indices, as well as the ruble and economic statistics and current events,” the expert said.

Finam analyst Timur Nigmatullin said that a background for the Russian market is positive, while Japan’s Nikkei 225 and China’s CSI 300 are rising, and futures for S&P 500 are growing slightly.

Olma senior analyst Anton Startsev said that the RTS is likely to consolidate at the start of trading.

TeleTrade analyst Mikhail Poddubsky said, “The release of statistics of U.S. oil reserves and production will take center stage today.” If oil production rises further, oil prices will be put under pressure, the analyst said.

Startsev said that the market may be also influenced by a report of ADP on employment in the U.S., which may affect forecasts of a monetary policy of the Federal Reserve System (Fed).

End