Russian stocks may open flat on no drivers, mixed environment
MOSCOW, Aug 25 (PRIME) -- Russian stocks are likely to open close to flat on Thursday as mixed external background provides it with no strong drivers, analysts said.
“We expect the Russian market to open with insignificant changes of the MICEX index within a 1,980–1,985 range. The levels of 1,975 and 1,960 will become the closest support level, while 1,995 and 2,000 points will act as resistance,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.
The background prior to the opening of the trading session is mixed as the Brent oil price has risen 0.143% to U.S. $49.12 per barrel as of 9.03 a.m. Moscow time, according to the ICE exchange, while U.S. stock index futures are changing insignificantly and Asian floors are in the red zone.
After the beginning of trade, the MICEX index is likely to continue consolidation and to wait for Western trading floors to launch. The calm external background does not prompt significant movement in any direction, Manzhos said.
“Technical analysis allows us to diagnose further consolidation of the RTS index. Investors are likely to restrain their activities in the few coming days as they are waiting for a Friday evening’s statement of the U.S. Federal Reserve System’s head that may provide information for further forecasts regarding interest rate dynamics,” Anton Startsev, a senior analyst at investment company Olma, said.
But Timur Nigmatullin, an analyst at investment company Finam, said that the MICEX index will trade close to flat during the first half of the day as a negative impact from the external background and cheap oil will be compensated by expectations of positive financial reports from companies that have a significant share in the market’s indices, including top lender Sberbank, oil company Gazprom Neft, and retailer Lenta.
Traders will also focus on oil prices, and statistics on U.S. weekly jobless claims and orders for durable goods, Manzhos added.
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