Russian stocks to open flat as investors wait for cbank Fri move

MOSCOW, Feb 2 (PRIME) -- Russian stocks are likely to open close to flat on Thursday as activity of investors will be low prior to a Friday statement of the central bank on monetary policy, while the external background provides the market with no strong drivers, analysts said.

“We expect the Russian stock market to open close to 2,230 points of the MICEX index and suppose that the stock indicator will remain around the current levels…due to a low activity of investors who are waiting for tomorrow’s decision of the central bank on monetary policy and corresponding comments,” Oleg Shagov, head of investment company Solid’s research department, said.

The Brent oil price, despite falling 0.33% to U.S. $56.61 per barrel as of 9.15 a.m. Moscow time, is still above a $56 mark and waiting for data on drilling activity in the U.S.; major Asian floors show no common dynamics, and the U.S. stock index futures are falling in the beginning of the day. The combination of factors makes the background for the start of the trading session, Shagov said.

“No reason for strong movements has emerged on the market after the expected results of a U.S. Federal Reserve System (Fed) meeting, which decided to keep the parameters of the monetary policy. Though the RTS index may open with a slight increase, technical analysis data show a possibility of a restart of the index downward correction,” Anton Manayev, head of investment company Olma’s trade relations department, said.

But Timur Nigmatullin, an analyst at investment company Finam, said that the MICEX may grow 0.5% at opening in spite of the contraction of oil prices as risky assets are supported by the Wednesday decision to maintain the key rate.

“Besides that, we have to point out the unexpectedly strong assessment of 2016 dynamics of Russia’s gross domestic product by the Federal State Statistics Service, as it contracted only 0.2% in the year against expected 0.7%,” Nigmatullin said.

Shagov also said that a release of financial results by steelmaker Severstal should be noted among local events that may have an impact on trade today.

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