Russian stocks seen falling at opening on lower oil price

MOSCOW, Oct 28 (PRIME) -- The Russian stock market is likely to open lower on Thursday as contraction of the oil price creates prerequisites for sales at the beginning of trade, analysts said.

“Negative dynamics of the prices for oil and the shares in the U.S., as well as falling Asian bourses precondition contraction of the stock market at opening. The market contraction may stop as soon as we see return of the Brent oil price to a 20-day average figure of U.S. $84.08, which should happen very soon,” Andrei Vernikov, head of the investment analysis and education department of investment company Univer Capital, said.

The oil price falls on the news that a date of negotiations with Iran on the nuclear deal is to be disclosed in the week that starts on November 1, and that the negotiations may happen at the end of November. Iran can eliminate deficit on the global oil market, and the initiative on the market may switch from investors to speculators until the end of the year, Vernikov said.

Alor Broker senior analyst Alexei Antonov said that the Russian market contracted on Wednesday as the negative impact from worsening of the monetary policy coupled with a fall of the energy prices.

“Today the external background provides no drivers for a downward trend to make a U-turn. The futures for the U.S. indices rise by a very slight margin this morning, as well as prices for commercial and industrial metals, but the oil price loses 1.7% to around $82.5 per barrel. The market will follow oil and start the day with a contraction,” Antonov said.

He also said that the gold producers may continue rising following an attempt of the gold price to consolidate above $1,800 per ounce.

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