Russian stocks seen flat as effect of cbank limits wears off
MOSCOW, Apr 4 (PRIME) -- The Russian stock market will likely open little changed on Monday because the effect of the central bank's trading restrictions is starting to fade, analysts said.
"The external background in the morning can be characterized as unclear. But in current conditions, this factor cannot serve as a guidance for opening of the local stock market," Vitaly Manzhos, senior risk manager at investment company Algo Capital, said. "We have to take into account that Friday's purchases on the local stock market fizzled out by the end of the first hour of trade," he said.
He said that prohibition of short positions for broker clients and of ruble asset sales by non-residents have distorted pricing, which is why it is not following the logic of the foreign markets and statistics.
Manzhos put the MOEX Russia Index opening range guidance at 2,700–2,810 and estimated the gap at up to 2%. The levels of 2,680 and 2,650 are to be support and the levels of 2,820 and 2,850 the resistance. The increase of the index may stop due to technical factors, he said.
Senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said that the external background for the session was moderately positive with the leading Asian markets rising by up to 2.2%, the key U.S. stock market futures increasing up to 0.3%, the nearest Brent future falling by 0.3% to about U.S. $104 per barrel.
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