Russian stocks may open flat on neutral background, low oil

MOSCOW, Oct 20 (PRIME) -- Russian stocks may open flat on Tuesday amid a neutral background ahead of upcoming decisions by global monetary authorities and on the back of low oil prices, analysts said.

“Our estimates show that the influence of main external factors that have a significant impact on the Russian financial market dynamics is close to neutral today at the start of the day. Brent oil futures fell to below U.S. $49 per barrel yesterday, but are currently trying to partially compensate the incurred losses,” Oleg Shagov, head of research department at investment company Solid, said.

Leading U.S. stock index futures are under pressure, but changing a little, while main Asian stock indicators are not showing single dynamics, Shagov said.

“We expect the Russian stock market to open around the level of the previous close, assuming that in the near future the MICEX index will continue fluctuations in a trading range outlined last week,” Shagov said. The resistance zone will be 1,740–1,750 points, while 1,700 points will be a support level, he said.

The Russian market will open with an insignificant change at the MICEX index, at around 1,715–1,720 points, Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said. On Monday, the MICEX closed at 1,716.08.

Markets will remain under pressure until the end of October, as major global central banks are slated to provide their monetary decisions over the next coming days, Shagov said.

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