Russian stocks seen down on lower oil price, falling global stocks

MOSCOW, Oct 26 (PRIME) -- Russian stocks may resume decline at the opening on Wednesday depressed by falling oil prices on the back of higher U.S. reserves and amid decreasing global stocks, analysts said.

“We expect the Russian stock market to open at the level of 1,975 at the MICEX index, assuming that amid worsening foreign background this stock indicator will resume decline after yesterday’s growth,” Oleg Shagov, head of investment company Solid’s research department, said. On Tuesday, the MICEX grew 0.73% to 1,977.19.

The ultimate influence of key external factors that have an impact on the Russian financial market is moderately negative at the beginning of the day, he said. Brent oil futures are decreasing following a report by the American Petroleum Institute (API), which pointed to significant growth of the U.S. oil reserves.

The U.S. stock index futures are suffering small losses, and main Asian stock indicators are mostly showing decline.

Olma senior analyst Anton Startsev said a downward correction is possible at the opening under influence of foreign factors. “API’s report about growth of crude oil reserves in the U.S. and Russia’s refusal to support oil production cut pushed the Brent oil price back to U.S. $50 per barrel,” he said. Russia believes it is acceptable to freeze oil production at current levels, he added.

Investors will follow publication of financial results by food retailer X5 Retail Group, gas producer Novatek, power holding Inter RAO and Internet giant Mail.Ru Group later in the day, analysts said.

End