Russian stocks seen flat on oil price recovery expectations

MOSCOW, Oct 23 (PRIME) -- The Russian stock market is to open with marginal changes on Monday in spite of decreasing oil prices and strengthening ruble, because investors expect the oil prices to recover and the central bank to make no serious key rate moves on Friday, analysts said.

"We expect that the MOEX Russia Index will test the range of 3,250–3,300 today and try to reset annual highs," Yevgeny Loktyukhov, head of Promsvyazbank’s research department, said.

"We expect that a moderate rise of the market will continue thanks to inertia: recovery of oil quotations, risks of further strengthening of the ruble and abundance of important events this week, firstly, Friday's meeting of the central bank, may limit demand for exporters," the analyst said.

The Brent oil prices slid by 1.12% on Monday in the morning to U.S. $91.19, and volatility may remain amid the supply risks. At the same time, a further fall to $90 might reduce chances of an upward correction to $98, BitRiver financial analyst Vladislav Antonov said.

The ruble strengthened 1.97% against the U.S. dollar and 1.29% against the euro last week, he said.

According to Antonov, the central bank is to raise the key rate to 14% to rein in inflation.

Loktyukhov said that the authority was unlikely to boost the rate higher than that, which is why the shares of banks, the consumer and electric power sectors are to outperform the market.

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