Russian stocks not to change much amid neutral background

MOSCOW, Jul 4 (PRIME) -- The Russian stock market can open neutrally and consolidate later in the day on Monday in light of an uncertain foreign environment, analysts said.

“We expect the MOEX Russia Index to change by around 1% within the 2,185–2230 range at the opening… The benchmark is likely to consolidate later thanks to an uncertain foreign background,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

The Brent oil price has lost around 0.2%, gold has inflated by 0.6%, and Asian market are seen around 0.2–0.4% higher. The U.S. stock exchanges are closed for celebration of Independence Day on Monday, he added.

The MOEX Russia Index is dangerously close to its 2-month lowest of 2,168, and its fall below the mark could form an unpleasant technical signal for a further decrease. The scenario is highly likely now. At the same time, the local market has a potential for an upward bounce-back, Manzhos also said.

Investment company Finam analyst Igor Dodonov said that the Russian market will probably open without significant movement and agreed that the external background looks neutral.

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