Russian stocks to open flat as oil consolidates, Chinese yuan rises

MOSCOW, Aug 14 (PRIME) -- The Russian stock market will open with a marginal dynamics on Friday because a slightly negative dynamics of the already low oil prices will outbalance the Chinese yuan increase, analysts said.

“The influence of the key factors on the Russian stock market in the start of the day, under our estimates, is close to neutral,” Oleg Shagov, senior analyst at investment company Solid, said.

Brent decreased 0.08% to U.S. $49.18 at 8.41 a.m., Moscow time. Asian markets demonstrate mixed dynamics, while U.S. stock market futures are falling slightly in the morning, which makes for a neutral overall background before the trading session start, Shagov said.

An undefined dynamics of oil prices can exert a certain pressure on Russian indices but there are no reasons for the RTS to demonstrate strong trends, Olma’s senior analyst Anton Startsev said.

The Chinese stock market was increasing on Thursday in the evening because authorities have kept their word not to devalue the yuan further, which is a positive factor for Russian assets, Finam analyst Anton Soroko said.

The MICEX will open at about 1,700–1,705, the closest support levels are 1,690–1,680 and the resistance ones at 1,710–1,720, Vitaly Manzhos, senior analyst at Bank Obrazovanie, said.

The Russian banking and oil and gas sectors may increase by inertia on Friday, Promsvyazbank analyst Ilya Frolov said.

The ruble weakening no longer supports Russian assets, and a considerable improvement on commodities markets is needed for Russian stocks to rise, Frolov said.

The abundant macroeconomic statistics releases will shape the Russian market trends later on Friday, Shagov said. The euro zone’s gross domestic product, industrial output and consumer confidence in the U.S. will have a certain influence on the Russian market, Startsev said.

Investors should be careful with MTS and VimpelCom securities because U.S. authorities can demand arrest of foreign assets of these companies amid a corruption case in Uzbekistan, Soroko said.

End