Russian stocks to open lower as oil price contracts

MOSCOW, Oct 31 (PRIME) -- Russian stocks are likely to open lower on Monday on falling oil prices, analysts said.

“A downward correction is possible today at the beginning of trade. The negotiations of OPEC members and other interested parties held last weekend did not lead to decisions that would allow us to expect an announcement of an oil supply cut at the next OPEC meeting in late November,” Anton Startsev, a senior analyst at investment company Olma, said.

The lack of agreements may push oil prices down, and the RTS index will follow, he said.

The Brent oil price fell 0.424% to U.S. $49.50 per barrel as of 9.09 a.m. Moscow time, according to the ICE exchange.

“We expect that Russian stock market will open in a 1,975–1,980 point range of the MICEX index and suppose that the market may continue consolidation around the current levels due to the low activity of investors,” Oleg Shagov, head of investment company Solid’s research department, said.

The ultimate influence of the key external factors is moderately negative at the beginning of the day. The U.S. stock index futures are edging up and Asian floors show no common dynamics, Shagov said.

Timur Nigmatullin, an analyst at investment company Finam, said that the negative external background prompts an opening of local markets with an up to 0.5% contraction of the MICEX index.

“Today the metals companies will have a volatile trading session. RUSAL and Norilsk Nickel are to publish their July–September operating results, while NLMK is to publish its financial results for the quarter. Besides, retailer Magnit’s board of directors is to decide on January–September dividends,” Nigmatullin said.

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