Russian stocks seen neutral amid Brexit uncertainty

MOSCOW, Oct 21 (PRIME) -- The Russian stock market will likely open with marginal dynamics on Monday amid uncertainty around Brexit, analysts said.

“We think that a neutral external background can hold down further growth of the (MOEX Russia) Index, therefore, we see a possibility of flat dynamics near the 2,750 notch,” Promsvyazbank senior analyst Mikhail Poddubsky said.

He said that the attitude of investors to risky assets has not changed after the U.K. Parliament passed an amendment demanding that Prime Minister Boris Johnson request a Brexit delay. Johnson will hold a meeting with Speaker of the lower chamber John Bercow later this week, and Brexit will most likely remain in the focus of attention, the analyst said.

Alor Broker analyst Alexei Antonov said that the background before the start of the Russian trading session is positive in general as the U.S. indices futures added about 0.2% on Monday in the morning and oil remained at the level of the October 18 evening.

Poddubsky said that a meeting of the European Central Bank later this week will unlikely bring about serious changes as it will be the last under the chairmanship of Mario Draghi.

Finam analyst Sergei Drozdov said that the support level for the MOEX Russia Index stands at 2,730 and 2,695. The resistance notch is 2,780. The local support level for the RTS index stands at 1,340 and 1,316, and resistance at 1,359.

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