Russian stocks to open flat as traders wait for key rate decision

MOSCOW, Sep 11 (PRIME) -- The Russian stock market will open neutrally on Friday because traders will wait for a meeting of the central bank later in the day, which will decide on a further key rate reduction, analysts said.

The ruler is likely to retain the key rate at its current level because of the accelerating inflation and weakening of the ruble, but the central bank can cheer investors up with a verbal intervention, Oleg Shagov, head of the analytical department at investment company Solid, said.

“No reasons for strong trends have appeared on the market so far, and the most likely scenario is consolidation near to a psychologically important level of RTS 800,” Anton Startsev, senior analyst at investment company Olma, said. The MICEX will likely open at 1,720, Shagov said.

U.S. stock futures are increasing on Friday morning, the Brent dynamics is neutral, while the Asian indices demonstrate mixed dynamics, all these factors will make the background for the start of the trading session in Russia moderately positive, Vitaly Manzhos, senior analyst at Bank Obrazovanie, said.

Russian traders will pay attention to oil futures’ dynamics and to the release of U.S. consumer sentiment index of the Michigan University later on Friday, Manzhos said.

Investors tend to sell stocks closer to the weekend, and the news from the U.S. and China does not leave hopes for a rally on the Russian market, Promsvyazbank analyst Ilya Frolov said.

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