Russian stocks to edge down at opening as oil prices fall

MOSCOW, Aug 17 (PRIME) -- The Russian stock market is likely to ease at opening and may slide during the day on Thursday due to a fall of oil prices, analysts said.

“The ultimate influence of the key external factors that provide a significant impact on the Russian financial market is moderately negative today… We expect the MICEX to open (lower) at 1,935-1,940 and believe the benchmark may move down out of a consolidation area formed in the past days if the external background continues to deteriorate,” Oleg Shagov, head of investment company Solid’s research department, said.

Olma senior analyst Anton Startsev said that consolidation within a 1,000-1,500 medium-term range is still the most probable scenario for the RTS index and that there is still high global demand for safe havens such as gold and U.S. treasuries.

Sergei Kozlovsky, head of the research department of forex broker Grand Capital, said that the Brent oil price has swung down to around $50.5 as investors do not believe that the market can reach a balance.

Shagov said that the main U.S. indices futures are seen in the negative territory and the Asian benchmarks look mixed. The European pre-market trading points to a lower start of trade.

Investors in Russia are also likely to follow IFRS financial results release for April-June from Magnitogorsk Iron and Steel Works (MMK) and recommendations of fertilizer producer Acron’s board of directors on dividends from undistributed profit of previous years.

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