Russian stocks to open flat on absence of positive drivers

MOSCOW, Dec 21 (PRIME) -- The Russian stock market is likely to start the trading session neutrally on Thursday because the external background does not provide any strong positive drivers for the market at a time when ruble’s growth restricts movement in the national shares, analysts said.

“We expect the Russian market to stabilize around the current levels at the start of trade today. The worsening mood on the external bourses and the inability of the oil futures to set in in the range of U.S. $80–85 per barrel on the energy market could restrict activity of the buyers and prevent our stock market from continuing growth,” financial marketplace Banki.ru senior analyst Bogdan Zvarich said.

The external background is mixed for the Russian market this morning, with the leading Asian bourses losing up to 1.6% while the Chinese stock market gained 0.5%. The futures for the main U.S. stock indices rose by up to 0.4% after a fall on Wednesday, while the Brent oil price fell by 0.2% to $79.5 per barrel. This is why the MOEX Russia Index would try to hold slightly above 3,100, Zvarich said.

“The MOEX Russia Index grew (on Wednesday) by 0.68% to 3,104.66, while the RTS Index gained 0.07% to 1,075.11. The index has been rising for four days straight, but the dynamics is winding down. The current pricing model is ideal for a further upward movement, but one should track the behavior of the ruble pairs. The ruble strengthening will prevent the MOEX Russia Index from climbing high,” BitRiver’s financial analyst Vladislav Antonov said.

At the start of the trading session, the ruble fell to 91.19 against the U.S. dollar, but rebounded to 90.60 fast.

Zvarich said that later in the day investors would focus on the U.S. statistics, including jobless claims, gross domestic product figures for July–September, and the Philadelphia Fed Manufacturing Index.

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