Russian stocks to open flat on Thursday due to lack of drivers

MOSCOW, Feb 28 (PRIME) -- Russian stocks are likely to open neutrally on Thursday as the general background provide no drivers, analysts said.

“Technical analysis does not point to strong movements of the RTS index in any direction, but the probability of it staying below 1,200 with a restart of downward correction is high,” Anton Startsev, senior analyst at investment company Olma, said.

“The external background looks neutral ahead of the opening, as weak business activity data in China had some impact on the Asian trade floors, but it did not turn into a money outflow from emerging markets.”

Mikhail Poddubsky, senior analyst at Promsvyazbank, also said that the news flow brings no drivers for the market this morning.

“A two-day statement of U.S. Federal Reserve System’s Chairman Jerome Powell to both houses of the U.S. Congress created no surprises, as market expectations of rate changes this year and the balance of the regulator did not change significantly. The U.S.–North Korea summit in Vietnam also brought no unexpected news…And even the major topic of the past several months, the U.S.– China trade war, remains in suspension,” Poddubsky said.

“We expect the MOEX Russia Index to open with an insignificant change of 0.2–0.3% close to 2,490. The levels of 2,480 and 2,470 will act the closest support, while 2,500 and 2,510 will become the resistance. After a neutral start of the day, the MOEX Russia Index may switch into consolidation, as a slight worsening of the background in the morning is not likely to become a reason for aggressive sales in the Russian shares,” Vitaly Manzhos, senior risk manager at Algo Capital, said.

Later in the day, investors will focus on U.S.’ gross domestic product (GDP) for October–December 2018 and the year of 2018, as well as weekly data on jobless claims, Manzhos said.

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