Russian stocks to open flat or down due to oil price pressure

MOSCOW, Mar 13 (PRIME) -- The Russian stock market is likely to open flat or lower amid mixed global environment, analysts said.

“We expect the MICEX to open in a 1,970-1,975 range today, assuming it may try to recover from last week’s losses if the external background improves,” Oleg Shagov, head of investment company Solid’s research department, said.

He added that the oil price is consolidating at around $51 per barrel, still under pressure on the back of the latest U.S. inventories and new drilling statistic data.

Finam analyst Bogdan Zvarich said the oil prices may become the reason for the Russian indices to suffer new losses.

“The external positive news will only be able to restraint our market. Oil prices are still the key factor for us, that is why investors will continue sales and the benchmarks may maintain last week’s bearish dynamics (in early trading). Later in the day market participants may switch attention to Europe, which could give the market the ground for an upwards correction. We expect consolidation on both the global and the local exchanges in the afternoon,” Zvarich said.

The U.S. stock exchanges show mixed dynamics while the Asian benchmarks are trading in the green territory. The European pre-market point to a flat opening as well.

“Investors are likely to focus on the Fed’s decision on the monetary policy, the U.S. state debt likely to reach another historical high, and a possible launch of the Brexit procedure,” Shagov said.

Russian traders will also follow 2016 financial results releases by power company Enel Russia and oil and gas pipe maker TMK.

(59.2174 rubles – U.S. $1)

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