Russian stocks seen flat as upward correction reaches limit

MOSCOW, Jan 27 (PRIME) -- The Russian stock market is likely to open with marginal changes on Friday as positive external factors are not enough to propel growth exceeding the limit of an upward correction, which the market has already reached, analysts said.

“We expect the Russian stock market to open at 2,225–2,230 of the MICEX today, assuming that this stock market indicator will fluctuate close to the levels that it has reached, reacting to shifts of the external background,” Oleg Shagov, head of investment company Solid’s research department, said. On Thursday, the MICEX closed rising 2.44% to 2,229.20.

Brent futures have consolidated at about U.S. $56.2 per barrel, supported by statements that OPEC plus non-members’ agreement participants are willing to fully comply with the requirements. U.S. stock market futures are little changed, Asian indices are growing slightly and the European premarket suggests marginal changes at the trading session start. All these factors are making for a neutral background for the opening of the Russian market, Shagov said.

Ilya Frolov, a senior capital market analyst at Promsvyazbank, said that an upward correction of the Russian market has reached a limit, setting a start for a consolidation.

Finam analyst Bogdan Zvarich said that the oil price can restart growth, triggering purchases of Russian assets.

Zvarich said that a release of the U.S. macroeconomic statistics, including durable goods orders and gross domestic product (GDP), will be the key factor defining Russian market trends in the evening. The Baker-Hughes Rig Count will be published after the Russian trading session closing and will influence trends on the Russian market on January 30.

Magnit is expected to release annual financial results and power producer Territorial Generating Company-1 (TGC-1) will release operating results, which will attract investors’ attention, he said.

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