Russian stocks seen opening neutral on flat oil, US futures

MOSCOW, Aug 5 (PRIME) -- The Russian stock market will likely open with marginal changes on Thursday because the oil prices and the U.S. stock market futures demonstrate no strong trend, analysts said.

"The external background is neutral in the morning -- the American futures and oil rise weakly, marginally, metals are traded mixed. This is why the MOEX Russia Index can correct slightly in the first half of the day," Alor Broker analyst Alexei Antonov said.

He said that market participants expected the oil prices to recover on Wednesday after an oil reserves report of the U.S. Energy Department, but it said that the reserves grew by 3.6 million barrels. The market expected a decline by 3.1 million barrels. Gasoline reserves declined more than expected, and oil production remained flat at 11.2 million barrels per day.

The pandemic situation in China continued to deteriorate reinforcing a pessimistic mood on the oil market, he said.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, put the MOEX Russia Index range estimate at 3,810–3,825. The levels of 3,800 and 3,790 are seen as support and 3,840–3,850 as resistance.

He said that after firming in the morning, the market will consolidate. In the second half of the session, the market will focus on the oil futures, the U.S. market opening and indirectly on the U.S. unemployment benefits statistics.

Antonov said that the outlook for the shares of metal companies is positive, albeit the China factor can pressure them a bit. All producers of minerals can benefit from weakening of the ruble, he added.

End %%mk/jst%%