Neutral background favors flat opening of Russian stocks

MOSCOW, Dec 27 (PRIME) -- Russian stocks are likely to open flat on Tuesday as neutral background provides it with no drivers for any kind of movement, analysts said.

“The background prior to the start of the Russian trade may be characterized as…close to neutral. We expect the market to open with insignificant changes of the MICEX index in a range of 2,175–2,180. The levels of 2,170 and 2,160 will act as the closest support level, while 2,190 and 2,200 will act as resistance,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

Oleg Shagov, head of investment company Solid’s research department, also said that the background is neutral as the Brent oil price is trading above a U.S. $55 per barrel mark, U.S. stock index futures are changing insignificantly and the main Asian floors show no common dynamics.

The Brent oil price fell 0.163% to $55.07 per barrel as of 9.15 a.m. Moscow time, according to the ICE exchange.

“We expect to see the Russian stock market’s opening of the MICEX index near the previous closure – 2,177.9, and suppose that the indicator may continue an outlined growth to a psychologically important mark of 2,200, if the external background improves with low pre–New Year activity of stock bears,” Shagov said.

Investors will track November financial results of the country’s second largest bank VTB and results of a meeting of gas giant Gazprom’s board of directors, which is to discuss an operating plan for January–June 2017, he said.

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