Russian stocks may open flat on neutral background

MOSCOW, Sep 28 (PRIME) -- Russian stocks are likely to open close to flat on Thursday as the external background is neutral and provides no significant drivers for local shares, analysts said.

“We expect the Russian stock market to open close to the yesterday’s closing point of the MICEX index of 2,081.1 and suppose that the stock indicator will continue the day around the current level as an upward mid-term trend of the index still prevails,” Oleg Shagov, head of investment company Solid’s research department, said.

The current external background for the Russian market is neutral as the U.S. stock index futures are changing insignificantly, the Asian floors show no common dynamics, and the Brent oil price is trading at around U.S. $57.7 per barrel, Shagov said.

“Today consolidation of the RTS index may continue. The tax reform plan announced on Wednesday by U.S. President Donald Trump became a notable event, but investor optimism in this case transforms into an inflow of capital to the U.S. stock market and into strengthening of the U.S. dollar, not in improvement at emerging markets,” Anton Startsev, a senior analyst at investment company Olma, said.

But Vitaly Manzhos, a senior risk manager at investment company Nord Capital, said that the MICEX index may open 0.3% lower due to easing of oil prices. However, he admitted that it is not a significant factor for the market as the prices are still high.

“The levels of 2,070 and 2,060 will remain as closest levels of support, while the levels of 2,085 and 2,100 will act as resistance,” Manzhos said.

Shagov also said that releases of financial reports by Russia’s second largest bank VTB and real estate developer Etalon group may have an impact on the local market, adding that today is the ex-dividend date for shares of the Moscow Exchange.

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