Russian stocks may open flat, RTS may fall on low oil price

MOSCOW, Jul 27 (PRIME) -- Russia’s MICEX index may open flat on Monday due to a weak ruble exchange rate and expectations of the U.S. Federal Open Market Committee statements (FOMC) later this week, while the RTS may fall on the back of oil price decline, analysts said.

“I expect the beginning of the trade on the Russian stock market to be neutral… Important reasons will be needed to break through the MICEX index support zone at a go, and this is why, I cannot rule out an attempt to rebound,” Oleg Shagov, senior analyst at investment company Solid, said.

The RTS is likely to continue the downward correction, Olma senior analyst Anton Startsev said.

Brent fell 0.15% to U.S. $54.54 per barrel at 9.21 a.m. Moscow time. The oil price dynamics together with the emerging markets’ stocks decrease and a lack of good news in Russia will make the index sink, Promsvyazbank analyst Ilya Frolov said. The ruble will support the MICEX, he said.

Investors will be waiting for a meeting of the FOMC slated for Wednesday, after which they will adjust estimates on the monetary policies’ toughening timeframe, Startsev said.

Russian investors will also wait for a meeting of the national central bank to be held on Friday, the decisions will influence the ruble rate and thus indirectly will affect the stock market dynamics as well, he said.

Oil futures will define the Russian stock market dynamics on Monday, Vitaly Manzhos, senior analyst at Bank Obrazovanie, said.

Investors will also pay attention to the release of the U.S.’ June durable goods orders figures on Monday, Manzhos said.

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