Russian stocks may open flat on global lull, consolidating oil

MOSCOW, Jul 21 (PRIME) -- The Russian stock market is most likely to open nearly flat and consolidate during the day on Friday due to a mixed external environment and as local negative drivers start to prevail, analysts said.

“There is no reason for the Russian stock indices to leave the consolidation bands. The Brent oil futures’ attempts to consolidate above $50 per barrel have failed and there is a lull on the global market,” Olma senior analyst Anton Startsev said.

Oleg Shagov, head of investment company Solid’s research department, expects the MICEX to ease to around 1,940-1,945 at opening and to consolidate around the current levels later.

He said that the Brent oil price is fluctuating around a $49.3 per barrel mark ahead of a U.S. drilling statistics release and OPEC technical committee’s meeting.

Alpari senior analyst Anna Bodrova said that the MICEX is to lose nearly 1.5% in the last 10 days on July due to ex-dividend gaps and other negative factors following a 7% upward trend, which started on June 16 on dividend payment optimism and technical drivers.

Bodrova also expects the MICEX to consolidate within a 1,930-1,960 range on Friday with a possibility of a fall.

The major U.S. benchmarks futures look flat, Asian indices are mixed, while the European markets are likely to open with no significant movement, too.

In Russia, investors will also follow publication of grocery retailer Magnit’s IFRS results and power producer Unipro’s RAS results for April–June and January–June, as well as agricultural holding Rusagro’s operating results for April-June among other corporate events.

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