Russian stocks seen flat on US mkt optimism, oil price fall

MOSCOW, Mar 27 (PRIME) -- The Russian stock market will likely open unchanged on Friday because the positive effect of the U.S. markets optimism will be offset by falling oil prices, analysts said.

"A period of the RTS index consolidation slightly above 1,000 can continue for a short time. Unpredictability of the scale of the pandemic effect on the economy (and disagreements between the leaders of the euro zone on the measures needed to help the economy) depress investor risk appetite," Olma senior analyst Anton Startsev said.

The U.S. stock market continued a rally in spite of a record number of unemployment applications reported on Thursday. Sergei Drozdov, analyst at investment company Finam, said that investors hoped that the new stimuli approved by the Senate would ease the negative effect of the coronavirus on the U.S. economy while the unlimited quantitative easing program of the Federal Reserve System would support the market.

Oil prices fell by 2.6% to U.S. $26.98 on Thursday at the end of the trading session, after the U.S. Energy Department refused to buy oil for the strategic reserve. Drozdov said that the slumping demand continues to pressure the market. On the other hand, the U.S. can convince Saudi Arabia to limit output, and in this case, oil can remain in a $25–31 range in the medium term.

On Friday in the morning, the Brent price recovered by 0.72% to $26.53 as of 9:11 a.m., Moscow time.

Drozdov said that the MOEX Russia Index could rise to 2,650–2,700 but is limited by the level of 2,500. The RTS resistance level is 1,000.

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