Russian stocks seen flat ahead of cbank meeting, US GDP release

MOSCOW, Oct 28 (PRIME) -- The Russian stock market may open with marginal dynamics on Friday because investors will avoid being active before a meeting of the central bank and publication of important U.S. statistics including gross domestic product (GDP), analysts said.

“We expect to see the market opening in a zone of 1,980 of the MICEX, assuming that this stock market indicator will be moving around this level ahead of the central bank’s monetary and credit policy decision and a set of important U.S. economic statistics,” Oleg Shagov, head of investment company Solid’s research department, said.

On Thursday, the MICEX rose 0.25% and the RTS 0.32%, following increased oil prices, but the trading volume fell which gives a reason to assume that Russian investors have a wait and see attitude, he said.

Oil futures, as well as U.S. stock market futures are slightly growing, while Asian indices are showing no single dynamics, and the European premarket indicates a small downward gap at the session opening, these factors are making for a neutral background for the session opening, Shagov said.

The foreign market activity is also subdued on the back of political uncertainty and expectations of toughening of the U.S. monetary policies, Olma senior analyst Anton Startsev said.

The technical analysis data says that a small RTS correction is possible, Startsev said.

The U.S. GDP figures will be in the focus of investors’ attention later on Friday, Shagov said.

A speech by CEO of Sberbank German Gref and publication of operating results by retailer O’Key will be among the key corporate events, he said.

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