Russian stocks may open flat amid stable oil prices

MOSCOW, May 24 (PRIME) -- Russian stocks may open flat or moderately decrease on Tuesday amid stable oil prices and overall neutral background, analysts said.

“We expect the Russian stock market to open neutrally at the level of 1,870–1,875 at the MICEX index, assuming that this stock indicator will continue consolidating around current levels, reacting to ongoing changes of the foreign background, and will try to win back part of suffered losses in case of its improvement,” Oleg Shagov, head of investment company Solid’s analytical department, said.

The influence of the key factors that have a significant impact on the behavior of the Russian stock market is close to neutral today at the beginning of the day, Shagov said. Brent oil price is fluctuating around U.S. $48 per barrel supported by expectations of a reduction of the U.S. oil reserves, with relevant statistics to be published on Wednesday.

The U.S. leading stock index futures are changing a bit; main Asian stock indicators are mostly suffering moderate losses.

Vitaly Manzhos, a senior analyst at Bank Obrazovanie, expects the MICEX index to open with a moderate decrease of 0.2–0.3% at around 1,865 points. The closest support levels will be 1,860 and 1,850, while 1,880 and 1,890 will act as resistance, he said.

A downward correction of the RTS index may deepen at the start of trading on Tuesday, investment company Olma leading analyst Anton Startsev said.

Global oil prices, behavior of Western stock indicators, the ruble rate dynamics and economic statistical data will be the main drivers for the Russian stock market on Tuesday, Shagov said. Investors will also look at results of Russia’s Eurobond placement and meat producer Cherkizovo Group’s financial report.

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