Russian stocks seen flat on volatile oil price, key rate cut in view

MOSCOW, Oct 30 (PRIME) -- The Russian stock market will see marginal dynamics at the opening of Friday’s trading session because the oil prices are volatile, and traders are waiting to see whether the central bank will reduce the key rate at a meeting later in the day, analysts said.

“No reasons for strong market dynamics have appeared so far, an unclear oil price trend is still a factor holding investors down,” Olma senior analyst Anton Startsev said.

Brent has 0.33% to $48.64 per barrel by 9:24 Moscow time.

“A decisions of the Russian central bank regarding the monetary policy, which can significantly affect both the domestic stock market and the ruble dynamics will be in the focus of investors’ attention,” Oleg Shagov, head of investment company Solid’s analytical department, said.

The MICEX will likely open at 1,710, and the resistance zone will stand at 1,740–1,750, Shagov said.

Russian traders will also wait for U.S. corporate reports, including the ExxonMobil’s one, and for the U.S. inflation figures, which will be released at 3:30 p.m., Moscow time, Startsev said.

Investors will track the dynamics of the worldwide risk appetite after the release of U.S. inflation and the Chicago purchasing managers’ index, also expected later on Friday, Promsvyazbank analyst Ilya Frolov said.

Transaero’s creditor meeting on Friday will define the fate of the company and will be in the focus of investor attention, Vitaly Manzhos, senior analyst at Bank Obrazovanie, said.

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