Russian stocks may open flat on absence of drivers

MOSCOW, Jan 17 (PRIME) -- Russian stocks may open flat on Tuesday as the market has no significant drivers for any kind of movement, analysts said.

“We expect to see the opening of the Russian stock market today close to a 2,190 mark of the MICEX index, and suppose that the stock indicator will continue fluctuations around the current levels during the day under the influence of changes in the external background,” Oleg Shagov, head of investment company Solid’s analytical department, said.

The background prior to the start of trade in Russia is neutral due to the oil price, which rose 0.198% to U.S. $55.56 per barrel as of 9.15 a.m. Moscow time, insignificant changes of the U.S. stock index futures and the lack of common dynamics on Asian floors. The European trading session’s premarket also points to marginal changes at the beginning of the day, Shagov said.

Ilya Frolov, a senior debt markets analyst at Promsvyazbank, said that investors will focus on the news flow from the World Economic Forum in Davos, and British Prime Minister Theresa May’s speech on the U.K. leaving the E.U.

The global markets are correcting downwards at the beginning of the week prior to major events, which include the inauguration speech of Donald Trump and two speeches of U.S. Federal Reserve System’s Chairwoman Janet Yellen.

“Taking into account that the short-term downward trend prevails, we suppose that the Russian stock market may continue falling at the beginning of the week, which will lead to the MICEX rolling back to the level of 2,140–2,160,” Frolov said.

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