Dull background to prevent Russian stocks from strong movement

MOSCOW, Jul 31 (PRIME) -- The Russian stock market is likely to open flat or with marginal changes and consolidate later in the day on Tuesday amid an unclear global environment, analysts said.

“The RTS index may correct down slightly at opening thanks to uncertain foreign background, but there are no reasons for any strong movement,” Olma senior analyst Anton Startsev said.

Vitaly Manzhos, senior risk manager at investment company Nord Capital, said that the MOEX Russia Index is likely to open flat and consolidate later in the day due to unclear environment.

Startsev said investor activity on the global market is decreasing ahead of a meeting of the Federal Open Market Committee of the U.S. Federal Reserve scheduled for August 1.

Due to a lack of strong drivers, the market may be highly influenced by crude dynamics. Finam analyst Sergei Drozdov said that the commodity is currently supported by a number of fundamental technical factors including U.S. anti-Iran sanctions which will be effective from August 4. Investors also wait for a weekly U.S. oil inventories report by the American Petroleum Institute (API).

Investors in Russia are also likely to follow a slew of financial and operating results releases for April–June and January–June from metals giant Norilsk Nickel, steelmaker Novolipetsk Steel (NLMK), power producer Enel Russia and flagship air carrier Aeroflot.

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