MOSCOW: Russian shares opened higher on Wednesday, with analysts expecting trading volumes to remain low ahead of second-quarter earnings and this week's European Union summit, while rouble gains were capped by further falls in the price of oil.
The country's benchmark dollar-traded RTS stock index gained 0.96 percent by 0740 GMT to trade at 1,301.03 points. Its rouble-denominated peer MICEX was up 0.87 percent at 1,354.52 points. Both bourses slightly outperformed the emerging markets index, which was up 0.68 percent.
Thursday's European Union summit, where bailout measures for problem members are likely to be a major theme, together with the approaching earnings season, have formed a wait-and-see approach among investors.
"Most will hunker down ahead of the earnings season," analysts at Uralsib wrote in a note. "It looks unlikely to be overly pessimistic, and outlooks from companies are to be the main trigger, with some window-dressing possible by the end of the week."
Shares of the gas producer Novatek were outperforming the broad MICEX index, gaining 1.1 percent after the company's chief executive officer said 2012 gas output may exceed plan.
The rouble also firmed slightly, with demand for the Russian currency due to monthly tax bills outweighing the downward pressure coming from sliding crude prices.
The rouble was up 0.17 percent against the dollar at 32.86, against the euro it rose 0.07 percent to trade at 41.09 and it was up 0.05 percent versus the basket at 36.56.
The rouble traditionally obtains support towards the end of each month, when Russian companies must sell dollars and euros to meet local taxes. Profit tax falls due on Thursday.
But oil prices - a major factor affecting the rouble's performance as crude remains Russia's main export were down on Thursday, with Brent crude falling below $93 per barrel as worries about global growth continue.
Analysts at VTB Capital expect the rouble to oscillate in the 36.50-37.50 range against the basket in the near term, while others pointed to the lingering shadow over markets from the euro zone's debt crisis.
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