Russian stocks may open flat on mixed foreign background

MOSCOW, Aug 31 (PRIME) -- Russian stocks are likely to open in a neutral way on Friday as the external background provides the market with mixed signals, analysts said.

“We expect the MOEX Russia Index to open with insignificant changes within 0.1–0.3% in the range of 2,330–2,335. The levels of 2,320 and 2,310 will act as the closest support, while 2,340 and 2,350 will act as resistance. The MOEX Russia Index may switch into consolidation after the neutral start of the day as the uncertain external background favors that,” Vitaly Manzhos, a senior risk manager at investment company Algo Capital, said.

U.S. stock indices were rising insignificantly within 0.1% early in the day, while the Brent oil price futures were wavering around the yesterday’s closing point. Gold prices gained 0.5%. Japan’s Nikkei225 index edged up 0.1%, while Hong Kong’s Hang Seng fell 0.8%, Manzhos said.

Anton Startsev, a senior analyst at investment company Olma, also said that the general condition of world markets provided no strong drivers for the Russia market.

“Data of the technical analysis shows a possibility of the RTS index continuing its movement down to the lower threshold of the consolidation range close to 1,050. The willingness of global investors to take risks has cooled down to a certain degree over concerns that the ‘trade war’ may worsen, as the U.S. may introduce new duties on U.S. $200 billion Chinese goods already next week,” Startsev, said.

Freedom Finance’s analyst Anastasia Sosnova said that the Russian stock market may follow the U.S. stock indices and falling Asian indices and open with a contraction on Friday. “The forecasted level of trade in the MOEX Russia Index is 2,300–2,330,” Sosnova said.

She also said that all emerging markets were under the pressure of crises in Argentina and Turkey, and expectations of an increase of rates by the U.S. Federal Reserve System also undermined currencies of emerging states.

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