Russian stocks seen opening flat on slightly negative background

MOSCOW, Oct 21 (PRIME) -- The Russian stock market can open neutrally on Thursday due to a fall in U.S. indices futures and consolidating crude prices, but the situation can reverse if the global sentiment improves, analysts said.

“Negative (dynamics) of the U.S. stock indices futures point to a neutral opening of the Russian market, but if crude prices manage to consolidate over U.S. $86 per barrel, the situation can change for the better,” Andrei Vernikov, head of investment analysis department of Investment Group Univer, said.

He added that oil prices cannot break through the resistance level of $85.5–86 per barrel yet although Saudi Arabia’s Energy Minister Abdulaziz bin Salman Al-Saud has almost ruled out that OPEC could raise oil supplies to reduce oil prices saying that such a move can result in a significant market glut at the end of 2022.

Alor Broker analyst Alexei Antonov said that the Russian stock market has been consolidating near its new record highs for 8 sessions in a row, and can break upwards to above 4,300 if the external background improves.

The Russian market will also be driven by an operating results report for January–September by electronic goods retailer M.Video-Eldorado, and IFRS financial reports for January–September by integrated steel producer Magnitogorsk Iron and Steel Works (MMK) and steelmaker Novolipetsk Steel (NLMK).

Investors can also be interested in NLMK’s decision on dividends for July–September and a new dividend policy that is to be considered by the board of directors of Rosseti Lenenergo.

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