Russian stocks to open flat as falling oil restrains purchases

MOSCOW, Aug 2 (PRIME) -- Russian stocks are likely to open flat on Wednesday as a slight contraction of oil prices will restrain purchases, analysts said.

“Despite the fact that the situation on the world trade floors is relatively favorable, the energy market is again in a downward correction after the American Petroleum Institute unexpectedly showed an increase in crude stocks in the U.S. of about 1.8 million barrels in a week,” Anton Startsev, a leading analyst at investment company Olma, said.

The Brent oil price lost 0.857% to U.S. $51.34 per barrel as of 8.58 a.m. Moscow time, according to the ICE exchange.

The change of mood on the oil market will act as a restraining factor for purchases in blue chips of the Russian oil and gas sector. “A downward correction of the RTS index is also not ruled out at the beginning of trade,” Startsev said.

Oleg Shagov, head of investment company Solid’s research department, said that the futures for U.S. stock indices grew in the morning, while the Asian floors showed no common dynamics. The premarket European trading signaled a slight increase of European bourses early in the day. Together with the fall of oil prices, the factors formed a neutral background prior to the opening of the Russian market.

“We expect to see the Russian stock market opening close to a 1,940 range of the MICEX index and suppose that the external conditions will result in the stock indicator remaining around the current level,” Shagov said.

Investors will track statistics on reserves and production of oil in the U.S. to be released by the Department of Energy, Shagov said.

Alexei Korenev, an analyst at investment company Finam, said that the Russian market will see any noticeable movements only in the second half of the day “if the U.S. crude stocks and agricultural employment are significantly different from the forecasted figures.”

End