Russian stocks likely to open flat as investors wait for ideas

MOSCOW, Jul 22 (PRIME) -- The Russian stock market is unlikely to show a directed movement at the beginning of the trading session on Friday in light of an uncertain global environment and a lack of ideas, analysts said.

“It is very difficult to project today’s dynamics of both the ruble and the stock market… Generally, the MOEX Russia Index lies within the downward trend and it is unlikely to reverse. One should not hope much that reaching the 2,000 mark can stop the fall. There are not many buyers as soon as there are no evident sights of a reversal,” Alor Broker analyst Alexei Antonov said.

At the same time, investors are likely to close short positions prior to the weekend, and the Brent oil price has increased to U.S. $105 per barrel, so the environment looks uncertain, he added.

The central bank will announce its key rate adjustment decision, and the market is waiting for a 0.5–1% reduction, Antonov said.

Head of PSB Bank’s analysis group Vladimir Solovyov said that the dynamics of foreign markets are also uncertain. Asian bourses are trading mixed, and the key U.S. indices futures are losing up to 1%.

Solovyov expects the MOEX Russia index to consolidate near the levels of 2,020–2,080 in the idealess environment.

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