Russian stocks seen neutral ahead of central bank board meeting

MOSCOW, Apr 26 (PRIME) -- The Russian stock market will likely open flat on Friday on the back of a neutral external background and a forthcoming meeting of the board of directors of the central bank, analysts said.

“The state of the external background before the start of trade in Russia can be qualified as undefined, or close to neutral. This creates conditions for opening of the MOEX Russia Index with little change,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

The MOEX Russia Index will likely open near 2,560. The levels of 2,550 and 2,540 will likely be the closest support ones and the levels of 2,580–2,590 the resistance, Manzhos said. Investment company Olma’s senior analyst Anton Startsev said that the RTS index support zone is 1,240–1,250.

The U.S. stocks futures are neutral, the Brent prices lost 0.2%, the gold futures added 0.2%. Japan’s Nikkei225 lost 0.2%, Hong Kong’s Hang Seng added 0.2%.

A meeting of the board of directors of the central bank is to be the main event on Friday, according to Georgy Vashchenko, head of investment company Freedom Finance’s department for trade operations on the Russian stock market.

He said that the ruler will unlikely reduce the rate because industrial output grew 1.8% in January–March, consumer and businessmen moods are improving, the stock market situation is good, a lot of money flowed into the OFZ bonds. The ruble weakened 1.5% against the U.S. dollar even with oil prices rising to U.S. $75 per barrel. Inflation remains higher than 5%, which is the main barrier for the key rate reduction.

According to Vashchenko, the market reaction to the meeting of the central bank board will likely be neutral.

Startsev said that the trade activity can remain low due to the neutrality of the external background. The U.S. gross domestic product’s preliminary estimate for January–June, to be released at 3:30 p.m., Moscow time, will affect the Russian market trend to a certain extent.

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