Russian stocks seen flat as British PM loses battle for fast Brexit

MOSCOW, Oct 23 (PRIME) -- The Russian stock market will likely open unchanged on Wednesday as global uncertainty over Brexit continues, analysts said.

“We qualify the external background before the start of trade on the Russian market as neutral. The Chinese indices fell during the Asian session, as well as the raw material prices, which will ensure additional pressure on the Russian assets at the opening of the market,” Vadim Kravchuk, analyst at investment company Solid, said.

Uncertainty over Brexit has remained as the government is sure that the idea to quit the E.U. is correct , while parliament does not want to take the responsibility and is dragging its feet, Kravchuk said.

Kravchuk said that oil prices surged 2% on Tuesday on the news that another round of oil output reduction can be considered at a meeting of the OPEC plus nonmember agreement states in December because demand is low and is not expected to improve in 2019–2020.

Finam analyst Sergei Drozdov said that the support level for the MOEX Russia Index stands at 2,778 and 2,760. The resistance notch is 2,810. The local support level for the RTS index stands at 1,368 and 1,350, and resistance at 1,382 and 1,392.

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