Russian stocks may open flat as investors wait for cbank meeting

MOSCOW, Jul 31 (PRIME) -- The Russian stock market may open flat on Friday, albeit the RTS can see a small downward gap, as traders will be waiting to see whether the central bank will cut the key rate once again at its meeting scheduled to take place later in the day, analysts said.

“I expect the Russian stock market to open at about 1,635 of the MICEX index, with a little downward gap of the RTS,” Oleg Shagov, head of analytical department at investment company Solid, said. Investors are waiting for a decision of the central bank regarding the key rate, Shagov said.

Many expect that at Friday’s meeting, the regulator will reduce the interest rate once again, Olma senior analyst Anton Startsev said.

Prior to the trading session start in Russia, U.S. stock market futures are moderately falling. Brent sank 0.43% to U.S. $53.08 at 9.18 a.m. Moscow time, which will create a downbeat mood in Moscow but still, there are no reasons for sell-offs, Bank Obrazovanie’s senior analyst Vitaly Manzhos said.

The U.S. decision to extend the black list of Russians over the crisis in Ukraine is perceived by investors as a new risk, Promsvyazbank analyst Ilya Frolov said.

Later on Friday, traders will also monitor statements made during President Vladimir Putin’s meeting with CEO of the country’s biggest lender Sberbank German Gref, Shagov said.

Releases of reports of U.S. oil companies ExxonMobil and Chevron will also provide Russian investors with important insights, Startsev said.

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