Russian stocks seen opening flat on lack of drivers

MOSCOW, Dec 3 (PRIME) – The Russian stocks are likely to open neutrally on Thursday as the market lack strong drivers, analysts said.

“We expect a sideways movement on the market. There are no corporate news to focus, and the market will price in the external background. The forecast for the MOEX Russia Index is 2,900–2,960,” Georgy Vashchenko, head of the department for operations on the Russian stock market at Freedom Finance, said.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, expected the MOEX Russia Index to open with a change of around 0.1–0.3% in the range of 2,915–2,930. He put 2,910 and 2,900 as the closest support levels, and 2,940 and 2,950 as the resistance levels.

The correctional increase of oil prices and futures for the U.S. stock indices in the morning is not sufficient to stimulate active purchases in the Russian shares. Taking into account weak dynamics of the U.S. stock indices on Monday, the external background is mixed for the Russian market, creating conditions for a neutral opening, Manzhos said.

Yelena Kozhukhova, analyst at Veles Capital, said that the market still lacks momentum for growth as it is restricted by negative fundamental factors and the fact that the U.S. stock indices are close to their all-time highs, provoking a downward correction.

“The mood of investors at international stock floors worsened at the beginning of the week as tensions between the U.S. and China strengthened, which may ignite further profit-taking among investors. The Russian market avoids a sharper contraction mainly because the risk appetite is still high. If market players see the danger of tough trade talks as high, bulls will have to back down sooner or later,” Kozhukhova said.

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