Russian stocks seen flat amid uncertain external background

MOSCOW, Dec 19 (PRIME) -- The Russian stock market is unlikely to demonstrate substantial movement at the opening on Monday, and will continue to consolidate later in the day amid vague global sentiments, analysts said.

“We expect the Russian stock market to open with moderate changes of below 0.8% within the 2,115–2,150 range of the MOEX Russia Index… The uncertain external background creates conditions for the benchmark to open with restrained movement. It is likely to turn to idealess consolidation later in the day,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

He added that the global environment is mixed with the core U.S. indices futures and gold trading flat, the Brent oil price adding 0.7%, and the main Asian markets seen 1.1–1.7% lower.

Promsvyazbank analyst Yekaterina Krylova said that the Brent oil prices is trying to return to the level of U.S. $80 per barrel thanks to the news from the U.S. and China. The U.S. used to sell crude from the strategic reserves, but now begins to buy it, and China’s government plans to stimulate internal consumption so the economic activity and therefore demand for oil are expected to recover.

Senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said the oil price dynamics can support the Russian market although pressure will persist as global investors’ appetites for risk remain low.

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