Russian stocks seen flat on oil price fall, Ukraine talks advance

MOSCOW, Jan 22 (PRIME) -- The Russian stock market will open neutrally because optimism from progress of Russia’s peace talks with Ukraine and from hopes that the European Central Bank (ECB) will launch economic stimuli at the meeting on Thursday is balanced by the weakening oil price, analysts said.

“The external background before the opening of the trading session in Russia may be qualified as undefined, or mixed,” Vitaly Manzhos, analyst at Nord-Capital, said.

“We expect trading to open with minor changes in a 1,615 and 1,620 range on the MICEX. The closest support levels will be 1,600, 1,590, and the significant resistance levels are 1,630, 1,640.”

“Market optimism is in many respects due to the expectations of ECB stimulating measures and due to advances in negotiations over the situation in Ukraine,” Olma’s senior analyst Anton Startsev said.

Russia and Ukraine established a ceasefire demarcation line during negotiations on Wednesday. Russia, Ukraine and the E.U. said that this was a “tangible progress” in the negotiations.

The Brent price fell 0.20% to U.S. $48.93 per barrel at 9.05 a.m., Moscow time.

The ECB will hold a meeting on Thursday evening Moscow time, and its decisions will shape the Russian market trends, Startsev said.

Also in the evening, the U.S. will release jobless claims data, the E.U. will release January consumer confidence figures, and the EIA will publish weekly oil reserves data, which will also be in the focus of Russian investors’ attention, Finam said.

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