Russian stocks to open flat as Western floors closed for holidays

MOSCOW, Dec 26 (PRIME) -- Russian stocks are likely to open flat on Monday as the external background provides it with no strong signals because the Western floors are closed for Christmas holidays, analysts said.

“The external background prior to the launch of trade in Russia may be characterized as neutral as major Western floors will be closed today to celebrate Christmas. We expect the local market to open with insignificant changes of the MICEX index in the range of 2,170–2,175,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

Russian trading will lack familiar external drivers, so after the neutral start, the MICEX will continue an idealess consolidation around current levels, Manzhos said.

Oleg Shagov, head of investment company Solid’s research department, said that the background is neutral as a moderate contraction of Asian floors is compensated by a slight increase of the oil prices. According to the ICE exchange, the Brent oil price rose 0.20% to U.S. $55.16 per barrel late on December 23.

“We expect to see the Russian stock market opening close to the last week’s ending point of the MICEX at around 2,173.2 points, and suppose that the stock indicator will continue to fluctuate at around the current levels in thin trade due to a low Christmas activity of Western investors,” Shagov said.

Shagov also said that among events worth noting are a meeting of the Supreme Eurasian Economic Council of Russia, Belarus, Armenia, Kazakhstan and Kyrgyzstan and the council of the Collective Security Treaty Organization, which includes Tajikistan besides the mentioned states. Russian President Vladimir Putin is to participate in the meetings, Shagov said.

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