Russian stocks seen opening flat as oil tries to rebound

MOSCOW, Jul 6 (PRIME) -- Russian stocks may open close to flat on Thursday morning as oil prices are trying to rebound after a Wednesday’s dip, analysts said.

Oleg Shagov, head of investment company Solid’s research department, said that the background prior to the opening of the Russian stock market is close to neutral. The U.S. stock index futures are changing insignificantly, the Asian floors are showing slightly negative dynamics, but oil prices are trying to hold above the U.S. $48 per barrel.

“We expect the Russian stock market to open close to the 1,920 point range of the MICEX index and suppose that ex-dividend cutoffs in shares of Tatneft and Rostelecom will make a negative impact on the stock indicator today,” Shagov said.

Anton Startsev, a leading analyst at investment company Olma, said that the energy market rebounded after the API said that the U.S. crude oil reserves contracted, which may support Russian shares at the beginning of the day.

“Still, technical analysis does not provide for a chance to diagnose the end of a downward trend of the RTS index, meaning there is still a possibility for the index to test 1,000.”

Ilya Frolov, a senior capital market analyst at Promsvyazbank, said the recovery of oil prices and downward dynamics of major world bourses make the background for the Russian market mixed.

“At the same time, we have not seen any reason for serious sales so far as investor sentiment toward the local market is supported by internal ideas connected with the G20 meeting and a possibility that state companies will pay interim dividends, as well as with a gradual weakening of the ruble, which helps exporters,” Frolov said.

Shagov also said that local trading may be affected by the ex-dividend date for oil major Lukoil, mobile operator MTS, and hydropower giant RusHydro. Also, the Arbitration Court of the republic of Bashkortostan is to decide on an alleged asset stripping by multi-industry holding Sistema in a suit filed by oil major Rosneft, he said.

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