Russian stocks may open flat on mixed foreign background

MOSCOW, Apr 28 (PRIME) -- The Russian stock market may open flat on Monday due to a mixed foreign background with U.S. futures being stable, while Asian markets are demonstrating negative dynamics, analysts said.

“We expect to see a neutral start on the Russian stock market, but the MICEX can start falling again on negative external background,” Promsvyazbank senior analyst Oleg Shagov said, adding that the situation on international financial and energy markets, corporate news and new macroeconomic data could all affect the MICEX index.

The S&P 500 index fell 0.8% on April 25, while the NASDAQ slumped 1.7%. The Nikkei 225 is losing 1.2%, while the S&P futures are trading flat.

A further worsening of the situation in Ukraine and possible new E.U. sanctions against Russia could pressure the index down.

“We are not overdramatizing the situation and do not think that the sanctions will have dramatic consequences for the Russian situation. But their introduction may cripple the Russian stock market in the short-term,” said Ivan Kivin, an analyst at Forex4You brokerage.

He forecast that the MICEX index may test a 1,260 level in the next few days.

Analysts said that investors are likely to prefer sitting in cash ahead of long holidays in Russia – local markets will be closed on May 1 and 2 and on May 9.

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