Russian stocks may open flat on absence of strong drivers

MOSCOW, Jul 12 (PRIME) -- Despite a slightly positive external background, there are no strong drivers for the Russian stock market on Tuesday morning taking into account the uncertainty in prices for oil, the mainstay of the country’s economy, analysts said.

“The external background is relatively favorable prior to the opening of trade if one does not take into account the dynamics of oil prices, which is still uncertain. But technical analysis shows no drivers for sharp movements of the RTS index in any direction,” Anton Startsev, a leading analyst at investment company Olma, said.

The U.S. stock indices grew on Monday, while futures for indices are growing marginally, and the Asian floors are increasing. The Brent oil price rose 0.323% to U.S. $46.40 per barrel as of 9.05 a.m. Moscow time, according to the ICE exchange.

“The oil prices are trying to retract to a $46.5 per barrel mark because of forecasts of contraction of the U.S. oil reserves and on the news about Iraq suspending oil loading at two terminals in Basra,” Oleg Shagov, head of investment company Solid’s research department, said.

“We expect the Russian stock market to open close to 1,910 of the MICEX index.”

The market will receive no support from the external background and oil prices and will open neutrally. “We expect the market to open with insignificant changes around a 1,910–1,915 range of the MICEX index. The levels of 1,900 and 1,890 will become the closest significant support levels, while 1,920 and 1,940 will act as resistance,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

The publication of OPEC’s June outlook of the global oil market’s condition and speeches to be made by certain managers of the Bank of England and the U.S. Federal Reserve System are among important events of the day, Shagov added.

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