Russian stocks to open flat on Ukrainian woes, mixed background

MOSCOW, Jul 1 (PRIME) -- Russian stocks are likely to open flat on Tuesday after a ceasefire in Ukraine ended and on the back of mixed foreign background and low investor activity, analysts said.

“There is no reason for strong market movement now, while the geopolitical factor still has a negative impact on investor activity,” Dmitry Kulakov, head of Olma’s stock department, said.

The ceasefire agreement on the Ukraine’s east run out on Monday, and President Pyotr Poroshenko refused to extend it promising a new offensive to “free our land.”

“It is now fully possible that when the Ukrainian army strikes and meets the resistance, it will become the reason for the E.U. to impose the economic sanctions against Russia that they’ve already prepared,” Vasily Oleynik, analyst at ITinvest, said.

U.S. indices closed with no significant changes, U.S. futures are edging up, European bourses closed mixed and Asian floors are showing no single dynamics.

“We expect a neutral opening,” Andrei Vernikov, an analyst at Zerich Capital, said.

But Promsvyzbank analyst Ilya Frolov expects the trading session to edge up at opening and the MICEX index testing the 1,490 mark.

Vitaly Manzhos of Nord Capital also thinks that the Russian stocks will open higher. “We expect the market to open with a slight increase in a 1,475-1,480 range,” he said.

Investors will focus on the release of the E.U. jobless claims and the U.S. business sentiment index.

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