Russian stocks likely to open flat on neutral background

MOSCOW, Nov 10 (PRIME) -- Russian stocks may open close to flat on Friday as the external background provides the market with no drivers, analysts said.

Oleg Shagov, head of investment company Solid’s research department, said that the influence of the key external factors for the Russian market is close to neutral at the beginning of the day as the U.S. stock index futures show no noticeable changes, the Asian floors have no common dynamics, and the Brent oil price is fluctuating around U.S. $63.8 per barrel in expectation of drilling rig data from the U.S.

“We expect the Russian stock market to open in a 2,180–2,185 range of the MICEX index and suppose that the indicator will remain at around the current level during the last working day of the week…Our estimates show the closest resistance level for the MICEX at around a psychologically important mark of 2,200, and support levels are around 2,170 and 2,155,” Shagov said.

Ilya Frolov, senior stock market researcher at Promsvyazbank, said that the Russian market may edge up at opening and continue the day trying to grow to 2,200–2,230 of the MICEX index, supported by a significant growth of the oil price in ruble terms and a favorable disposition of the global markets.

But Vitaly Manzhos, a senior risk manager at investment company Nord Capital, said that the Russian market may open with an about 0.3% decrease close to 2,175–2,180 of the MICEX index as the Thursday contraction of the U.S. stock indices exerts pressure on the market.

The Dow Jones Industrial Average lost 0.43% to 23,461.94, and the S&P 500 contracted 0.38% to 2,584.62 on Thursday.

During the day, the release of preliminary November estimate of the Michigan Consumer Sentiment Index may have an impact on the local trade, Manzhos said.

Shagov also said that local investors will wait for reports from an expected meeting of U.S. President Donald Trump and Russian President Vladimir Putin.

End