Russian stocks to slide as oil futures decrease below $55

MOSCOW, Feb 8 (PRIME) -- The Russian stock market may decline at Wednesday opening due to an oil price decrease below U.S. $55 per barrel and expectations for an idealess trading session, analysts said.

“The ultimate influence of key external factors that have a significant impact on the Russian financial market has been moderately negative today in the start of the day in our estimates,” Oleg Shagov, head of investment company Solid’s research department, said.

Brent futures for April decreased below $55 per barrel on the back of American Petroleum Institute (API) statistics which shocked investors with signs of a significant U.S. oil reserves growth. U.S. stocks futures and Asian markets are not demonstrating single dynamics. The premarket of the European session also signals marginal dynamics of the leading stock market indices at the session start.

According to Shagov, these factors are expected to make the Russian market fall to about 2,215 of the MICEX at the opening, and in case of an external background deterioration, the index will test the support zone of 2,200.

Ilya Frolov, a senior capital market analyst at Promsvyazbank, said that the MICEX will be mostly consolidating in a range limited by a support zone of 2,160–2,180 and a resistance one of 2,240–2,250.

He said that oil market situation changes can inspire investors to leave this range.

Shagov said that an expected release of data on oil reserves and production in the U.S. can become a potential driver of the Russian market on Wednesday.

According to Frolov, BP will issue an energy market forecast until 2035 which will influence the oil market situation.

Corporate stories will come to the spotlight amid an idealess trade. UC RUSAL and Mechel are expected to present their operating results for October–December later this week and will attract investors’ attention, Frolov said.

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