Russian stocks may open flat on absence of drivers

MOSCOW, Oct 4 (PRIME) -- Russian stocks are likely to open neutrally on Tuesday in the absence of strong drivers from abroad and easing oil prices, analysts said.

“The end influence of the key external factors that have a significant influence on the behavior of the Russian financial market is close to neutral at the beginning of the day. The December Brent oil futures are edging down after four consecutive days of growth due to forecasts of higher oil reserves in the U.S.,” Oleg Shagov, head of the research department at investment company Solid, said.

The Russian market will open within a 1,985–1,990 range of the MICEX index and consolidate around the current levels tracking the oil price and Western trading floors, Shagov said.

The Brent oil price slid 0.434% to U.S. $50.67 per barrel as of 9.06 a.m. Moscow time, according to the ICE exchange.

“Today at the beginning of the day, the RTRS index is very likely to try to hold above the psychologically important mark of 1,000 points. The external background is relatively favorable, but it provides no grounds for a strong upward movement as there are many factors of uncertainty, including the U.S. elections and fulfillment of OPEC oil production agreements,” Anton Startsev, a senior analyst at investment company Olma, said.

Vitaly Manzhos, a senior analyst at Bank Obrazovanie, also said that the Russian market is likely to open with insignificant changes around a 1,985–1,990 range of the MICEX index due to an unclear external background. The levels of 1,975 and 1,960 points will become the closest support, while 2,000 and 2,010 will act as resistance,” he said.

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