Russian stocks seen flat on slight oil rebound, neutral background
MOSCOW, Dec 29 (PRIME) -- Russian stocks may marginally increase or open flat on Tuesday amid a slight oil price rebound, but trading activity will be low ahead of the New Year holidays, analysts said.
“We expect the Russian stock market to open at around 1,730–1,735 points at the MICEX index, assuming that amid decreased pre-New Year investor activity this stock indicator will most likely continue fluctuations in a trading range which formed near its 100-day average lately,” Oleg Shagov, head of investment company Solid’s research department, said. On Monday, the MICEX closed at 1,731.20.
The oil price and ruble rate dynamics will remain the key drivers for the Russian market, Shagov said.
“We expect a neutral trade opening on the Russian stock market,” Finam analyst Bogdan Zvarich said. The MICEX index will continue consolidating around 1,730 points amid no drivers, while investors will prefer to take a pause ahead of long holidays, the analyst said.
The influence of the main external factors on the Russian market is close to neutral on Tuesday morning. Brent oil futures are fluctuating around U.S. $36.6 per barrel and slightly increasing after an over 3% decline on Monday partially caused by Iran’s announced intention to boost oil exports.
The U.S. leading stock index futures are slightly growing winning back losses of the previous trading day, and main Asian stock indicators are mostly demonstrating positive dynamics, Shagov said.
“From the technical analysis positions, the RTS index has reached the bottom line of the wide consolidation range (750 points) and still remains in consolidation,” investment company Olma senior analyst Anton Startsev said. However, a decline may be suspended at the start of trading on Tuesday amid some rebound of oil prices, the analyst said.
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