Russian stocks to open flat as investors wait for drivers

MOSCOW, Jul 14 (PRIME) – The Russian stocks are likely to open neutrally on Tuesday as investors are waiting for drivers to come from corporate reports and for the news from a two-day meeting of the OPEC+ cartel, analysts said.

“Buyer activity in the sector of liquid securities may be low today at the beginning of trade as the market doubts the prospects of global economic recovery, and is waiting for corporate reports,” investment company Olma’s senior analyst Anton Startsev said, adding that J.P. Morgan Chase, Citigroup, and Wells Fargo are to report during the day.

“Moreover, Gazprom can publish its report under international standards for the first quarter of this year.”

Alor Broker senior analyst Alexei Antonov said that the background for the Russian market was neutral at the beginning of the day. The futures for U.S. stock indices rose, but the oil prices fell by more than 1.5% under the pressure from expectations of results of the OPEC+ two-day meeting, where it will discuss production quotas for August.

“If the external background improves, the MOEX Russia Index may show a slight growth, but it will only be caused by profit taking on short positions, and joining it would be risky. After several unsuccessful attempts to break the upper range of the sideways channel at 2,810, the ruble indicator of the market will be likely to test a lower range of 2,700,” Antonov said.

Yelena Kozhukhova, analyst at Veles Capital, said that the mood on foreign bourses was optimistic, but it would be difficult for the national market to follow the foreign benchmarks in a few coming days due to a large amount of corporate stories, including dividend cutoffs and releases of operating and financial results. Corporate releases may become a reason for the market to continue its sideways movement, she said.

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