Russian stocks seen flat on rising oil, fruitless G20 meeting

MOSCOW, Feb 29 (PRIME) -- Russian stocks are likely pare the February 26’s gains at Monday opening because the effect from rising oil prices will be offset by a worldwide wave of disappointment over the results of a G20 ministers’ meeting, analysts said.

“Some downward correction is possible today in the start of the trade. Investors, according to the patterns of trade in Asia, were disappointed by the outcomes of a meeting of G20 finance ministers. Albeit the meeting participants recognize the risks related to the overcooling of the economy, they have not proposed any plan of coordinated actions to spur the economic growth,” Olma’s senior analyst Anton Startsev said.

The S&P 500 futures are slightly sagging on Monday but Brent prices have approached the U.S. $35.6 per barrel notch on the news that the number of U.S. drilling rigs fell, which makes for a mostly neutral background, Oleg Shagov, a senior analyst at investment company Solid, said.

The MICEX will likely open with an insignificant gap, at about 1,815–1,820. The closest support levels are 1,810 and 1,800 and the resistance ones 1,830 and 1,840, Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

Russian investors will be seeking for reasons to start a pre-holiday rally before the International Women’s Day on March 8, and will be listening to statements of officials of the U.S. Federal Reserve System, the European Central Bank and the Bank of England during the week. On Tuesday, President Vladimir Putin will meet with oil companies’ representatives, this event can set the tone for the week’s trade, Shagov said.

Later on Monday, the euro zone will release inflation figures for February, a negative inflation figure can trigger more economic stimuli by the European Central Bank, Alor Broker’s analyst Alexei Antonov said.

Novatek and Aeroflot will become investors’ favorites on a strong report by Novatek and information that Rostec can consolidate a 20% interest in Aeroflot, the research team of Aton said.

Severstal’s shares will be declining after an accident at a mine, Aton’s analysts said.

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