Russian stocks seen opening flat on lack of drivers

MOSCOW, Sep 2 (PRIME) -- The Russian stock market is likely to start Thursday’s trade in a neutral way as the market lacks serious drivers for any kind of movement, analysts said.

“The Asian markets trade mixed today. The ulls will be careful as the resistance level of the RTS Index of 1,720 is very close, this is why we are likely to see neutral dynamics of the market at the opening,” Andrei Vernikov, head of the investment analysis and education department of investment company Univer Capital, said.

Alor Broker’s senior analyst Alexei Antonov also said that the chances for the Russian market to continue growing are slim.

“The external indicators that are important for the Russian market are close to their yesterday’s closing, and show no signs of growth. The MOEX Russia Index is very close to 4,000, which many saw as a growth target. That is why the wish to take profit will only grow if the external background does not improve,” Antonov said.

There are no drivers for the oil price to grow further. The OPEC+ alliance decided against increasing production, and the oil prices didn’t even react to a significant contraction of oil reserves in the U.S. in the wake a tornado that ravaged the Gulf of Mexico, Antonov said.

The Moscow Exchange is to publish its trade volumes for August. If the market does not receive new ideas, investor demand may switch into the shares of the exchange, he added.

But Vitaly Manzhos, senior risk manager at investment company Algo Capital, said that the Russian stock market may start the day with a slight contraction as the market will price in a 0.4% contraction of the Brent oil price.

“We expect the MOEX Russia Index to open with a fall of up to 0.1–0.4% in the range of 3,955–3,965. The levels of 3,950 and 3,930 will act as the closest support, while 3,970 and 3,980 will become the resistance. The MOEX Russia Index is likely to price in the moderate morning fall of the price of oil futures in the first few minutes of trade, and after that, it is very likely to switch into consolidation around 3,960,” Manzhos said.

End