Russian stocks may open flat as investors wait for OPEC meeting

MOSCOW, Nov 29 (PRIME) -- Russian stocks are likely to open neutrally on Tuesday as the external background provides the market with no strong signals ahead of OPEC’s Wednesday meeting on a possible production freeze agreement, analysts said.

“No reasons for strong movements on the market have emerged. The uncertainty regarding possible OPEC decisions is still a restraining factor for investors, and it prompts a further consolidation of the RTS index,” Anton Startsev, a senior analyst at investment company Olma, said.

Oleg Shagov, head of investment company Solid’s research department, said that the ultimate influence of key external factors that have a significant impact on the Russian stock market’s behavior is close to neutral at the beginning of the day. The Brent oil price fluctuates around a U.S. $48 per barrel mark waiting for OPEC’s decisions, while the U.S. stock index futures are easing and main Asian floors are showing no common dynamics.

But the ICE exchange’s data showed that the Brent oil price fell 0.85% to $47.83 per barrel as of 9.14 a.m. Moscow time.

Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said that the local market may price in the slight contraction of the oil prices at the beginning of trade.

“We expect the market to open with a significant fall of about 0.3–0.5% of the MICEX index in a 2,085-2,090 range. The levels of 2,080 and 2,070 will become the closest support, while 2,100 and 2,110 will act as the resistance levels,” Manzhos said.

Manzhos also said that the release of the U.S. July–September adjusted gross domestic product may affect the local market, while Shagov said that financial results of oil major Lukoil and metals and mining group Mechel are worth noting.

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