Russian stocks may open close to flat on no drivers for movements

MOSCOW, Oct 6 (PRIME) -- Russian stocks are likely to open close to flat on Tuesday thanks to a neutral background providing no drivers for any serious movements, analysts said.

“The impact of key external factors that provide significant influence on the Russian stock market’s dynamics is close to neural at the beginning of the day, according to our estimates,” Oleg Shagov, head of investment company Solid’s analytical department, said.

Prior to the domestic opening, the Brent oil price edged up 0.344% to U.S. $49.42 per barrel and Asian floors are showing mostly positive dynamics, while U.S. stock index futures are decreasing.

“We expect the opening of the Russian stock market to be neutral today and suppose that the MICEX index may try to settle above its 200-day average level, which now is slightly above the 1,652 point mark,” Shagov said.

The Russian market is likely to open with insignificant changes of the MICEX index within the 1,650–1,655 point range, with 1,640 and 1,620 point marks being the closest support levels and 1,665 and 1,680 point marks being the levels of significant importance to the index, Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

“After the neutral start of trades, the MICEX index is likely to switch to a consolidation close to the opening level waiting for important external signals. The mixed morning background supports that,” Manzhos said.

Many traders say that the U.S. Federal Reserve System (Fed) is more than 50% likely to increase its key rate no earlier than in March 2016, which may support a positive opening of Russian stocks, Anton Startsev, a senior analyst at investment company Olma, said.

“At the same time, the increase of the oil market may slow down after the Brent futures’ price reaches the psychologically important level of $50 per barrel, as the increase is not of a stable character,” Startsev said.

End