Russian stocks may open flat on mixed environ, neutral oil
MOSCOW, Apr 19 (PRIME) -- Russian stocks are likely to open close to flat on Tuesday as mixed external background and neutral dynamics of oil prices provide no strong drivers for any kind of movement, analysts said.
“The influence of the key factors that have a significant impact on the behavior of the Russian stock market is mixed today at the beginning of the day….Futures for U.S. stock indices are changing insignificantly, main Asian indicators show mostly positive dynamics, and the European session’s premarket shows a possibility of mixed changes of main indices at the start of Tuesday’s trade,” Oleg Shagov, senior analyst at investment company Solid, said.
The Brent oil price remains almost flat at U.S. $42.92 per barrel as of 8.43 a.m. Moscow time, according to the ICE exchange.
“The uncertainty on the oil market has strengthened, which may prompt increased volatility on the stock market. The strike of oil producers in Kuwait supports prices for energy sources, but the influence of the factor may not remain for long,” Anton Startsev, leading analyst at investment company Olma, said.
“We expect the market to open in a neutrally-negative way close to a1,885–1,890 range of the MICEX index, and suppose that the mixed external background will leave the market fluctuating around current levels during the day and tracking changes in external news flow,” Shagov added.
But if oil prices remain stable or even grow, the MICEX index may try to return to a 1,900–1,920 range during the day. But if the oil prices fall, the market will follow it with a downward correction, Ilya Frolov, an analyst at Promsvyazbank, said.
During the day, investors will track the U.S. housing construction data and reports of the U.S. companies, Startsev said.
Among important domestic events, investors will watch for Prime Minister Dmitry Medvedev’s speech at a meeting of the State Duma, the parliament’s lower house, and for statements of the central bank and the Finance Ministry, Shagov added.
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