Russian stocks may edge up at opening as Fitch affirms ratings
MOSCOW, Aug 20 (PRIME) -- Russian stocks may edge up on Monday as international rating agency FitchТs affirmation of the countryТs ratings at BBB- with a Positive outlook will support local shares, while the oil price dynamics will dwarf the upward movement, analysts said.
УWe expect the MOEX Russia Index to open with an insignificant increase of 0.2Ц0.3% in the range of 2,255Ц2,260ЕThe market is likely to price in the positive Friday news on Fitch affirming the long-term issuer default ratings of Russia at BBB- with a Positive outlook during the first minutes of trade,Ф Vitaly Manzhos, a senior risk manager at investment company Algo Capital, said.
УBut this positive impact may be significantly softened by the morning worsening of the mood on the oil market. Later in the day, the MOES Russia Index is likely to switch to consolidation close to the opening point.Ф
The Brent oil price lost 0.167% to U.S. $71.71 per barrel as of 9.01 a.m. Moscow time, according to the ICE exchange.
УThe external background provides no drivers for strong movements on the stock market. At the same time, the Emerging Portfolio Fund ResearchТs data shows an increase in outflow of money from Russia-dedicated funds, which may be seen as a confirmation of a material impact of concerns connected with sanction risks,Ф Anton Startsev, a senior analyst at investment company Olma, said.
УFrom the point of view of technical analysis, we would be able to speak about significant movements if the RTS index falls below the local minimal point of 1,040.Ф
Manzhos also said that local traders will track the oil price dynamics as no noticeable macro statistics are to be released.