Russian stocks seen opening neutral as sanctions fears fade

MOSCOW, Dec 10 (PRIME) -- The Russian stock market can open with insignificant changes on Friday due to a neutral oil price dynamics and on the news that there is much uncertainty in sanctions plans against Russia over Ukraine, analysts said.

"The external background before the opening of morning trade in Russia can be characterized as mixed, or unclear. It will create conditions for opening of the MOEX Russia Index with insignificant changes," Vitaly Manzhos, senior risk manager at Algo Capital, said.

Alor Broker senior analyst Alexei Antonov said that the Russian market was supported late on Thursday by the news that the U.S. administration saw sanctions against the oil sector as a last resort because of fears of a further rise of oil product prices in America. Spokesman for the European diplomacy Peter Stano said that it was too early to speak about the certainty of sanctions against Russia, which also supported the mood of local investors.

Antonov said Russian investors are to take profits in the second half of the day because of fears of provocations on the Ukrainian border, which can hurt the ruble assets.

On Friday morning, the U.S. stock market futures grew by up to 0.2%, the Brent futures changed marginally. The gold futures added 0.1%. The Shanghai Composite lost 0.2%, the Nikkei225 decreased by 0.4%, Manzhos said, adding that this creates a mixed background for the start of the day session.

Manzhos put the MOEX Russia Index range at 3,800–3,820. The levels of 3,790 and 3,770 are support and of 3,830 and 3,850 are the resistance.

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