Russian stocks seen flat amid mixed foreign background, rising oil

MOSCOW, Jul 20 (PRIME) -- Russian stocks are projected to open neutrally on Friday amid a mixed foreign background, rising oil prices, and a lack of major growth drivers, analysts said.

“We expect a neutral opening of the MOEX Russia Index with an insignificant change of up to 0.3%, around the level of 2,270 points. The nearest support levels will 2,260 and 2,250 points, while 2,290 and 2,300 points will be main resistance,” Vitaly Manzhos, a senior risk manager at investment company Nord Capital, said.

The mixed foreign background creates conditions for a neutral opening of the Russian stock market, but the MOEX Russia Index still has some potential for a correctional rebound, which may take place by the middle of the trading day, the analyst said. “That’s why we do not rule out a recovery of this index to the level of 2,280–2,290 points.”

Before the start of trading in Russia, the U.S. stock index futures are demonstrating a moderate mixed deviation within 0.3%, Brent oil futures rose 0.3%, gold futures lost 0.2%, Japan’s Nikkei225 decreased 0.6%, and Hong Kong’s Hang Seng fell 0.1%.

Olma senior analyst Anton Startsev said that a recovery of stable growth of the RTS index looks unlikely now, as the foreign background on the whole remains uncertain and does not give signals for a capital inflow to the Russian market.

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