Russian stocks seen flat or down as oil prices try to rebound

MOSCOW, Mar 9 (PRIME) -- Russian stocks are not expected to change much at the opening on Thursday amid a negative foreign background and oil prices trying to restore after a major decline, while a falling ruble can support the MICEX index, analysts said.

“We expect the Russian stock market to open at the level of 2,020–2,025 points at the MICEX, assuming that this stock indicator, being in a downward trend, will receive support from the ruble’s weakened positions,” Oleg Shagov, head of investment company Solid’s research department, said. The MICEX closed at 2,024.84 on Tuesday and was closed on Wednesday for a national holiday.

The ultimate influence of key external factors that have a significant impact on the Russian financial market is moderately negative today, the analyst said. Brent oil futures are fluctuating around U.S. $53.5 per barrel trying to partially win back 5% losses it suffered a day earlier on the release of the oil statistics data, which indicated a significant growth of the U.S. oil reserves and production. The leading U.S. stock index futures are not changing much, and main Asian stock indicators are mostly demonstrating negative dynamics.

Finam analyst Bogdan Zvarich expects that the MICEX index will fall below 2,000 points during the first minutes of trading due to the Brent oil price losing 4% on Wednesday.

Investors will follow publication of financial results by power producers Mosenergo and Wholesale Generating Company-2 (WGC-2), as well as diamond giant ALROSA’s February sales, among other corporate events on Thursday.

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