Russian stocks to edge down at opening as oil prices fall

MOSCOW, Jul 25 (PRIME) -- The Russian stock market can edge down at opening on Monday on the back of oil market pessimism, but a traditional summer lull and investor wariness ahead of a U.S. Federal Reserve System (Fed) meeting will not allow the negative trend to develop, analysts said.

“The growth in the number of the U.S. drilling rigs reported by Baker Hughes has been a cooling factor on the fuel market, which can hurt the Russian blue chip sector,” Anton Startsev, a senior analyst at investment company Olma, said. He added that the foreign market situation does not provide a reason for a strong market dynamics.

Brent futures are close to a U.S. $45.6 per barrel contributing to a mostly neutral background during the opening of the trading session in Russia, Oleg Shagov, head of investment company Solid’s research department, said.

A upcoming meeting of the U.S. Fed will also cause a certain standstill on the market. Statements will be made on Wednesday evening, Startsev said.

The MICEX can open at about 1,930–1,935, while 1,950 will be a resistance level, Shagov said. A downward correction of the RTS can deepen, Startsev said.

Retailer Magnit and power holding Inter RAO will publish their financial results, which can influence both the related companies’ shares and the market as a whole.

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