Russian stocks may open flat on stable oil, upcoming May holidays

MOSCOW, Apr 27 (PRIME) -- Russian stocks may open flat on Thursday amid mixed background and low investor activity ahead of upcoming May holidays, analysts said.

“We expect the Russian stock market to open at the level of yesterday’s close at the MICEX (1,934.77), assuming that amid uncertain general background this stock indicator will continue fluctuations around current levels with investors’ reduced activity caused by upcoming May holidays, reacting to ongoing events by bursts of activity,” Oleg Shagov, head of investment company Solid’s analytical department, said.

Oil price dynamics, behavior of Western stock indicators, ruble rate dynamics and macroeconomic and corporate news will remain the key drivers for the Russian market, he said.

The influence of the key factors that have a significant impact on the behavior of the Russian stock market is close to mixed today at the beginning of the day, Shagov said.

Brent oil price reached U.S. $47 per barrel on a reported decrease of the U.S. oil production. The U.S. leading stock index futures are suffering losses and main Asian stock indicators are not demonstrating single dynamics on the back of the Japanese central bank’s decision to leave its monetary policy unchanged.

Vitaly Manzhos, a senior analyst at Bank Obrazovanie, expects the market to open with a moderate increase of around 0.3% at the MICEX index, close to 1,940 points. The next support levels will be 1,930 and 1,920 and the resistance zones are 1,950 and 1,960.

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