Russian stocks to open flat on mixed environment, no drivers

MOSCOW, Dec 5 (PRIME) -- Russian stocks are likely to open neutrally on Tuesday as a mixed external background provides local players with no strong drivers, analysts said.

“Today the rise of RTS index that emerged yesterday may be suspended. The first reaction of Western traders to the U.S. Senate passing the tax reform plan although grounded and positive, is not sustainable (details are to be adjusted and contradictions between the bills of the reform that were approved by the Senate and the House of Representatives are to be settled),” Anton Startsev, a leading analyst at investment company Olma, said. “The raw materials market situation also looks uncertain.“

Vitaly Manzhos, a senior risk manager at investment company Nord Capital, said that the background prior to the start of the trade in Russia is mixed as the U.S. stock index futures are rising 0.3%, while the Brent oil price shows flat dynamics around U.S. $62.5 per barrel after a massive Monday contraction. The Japanese Nikkei225 index decreased 0.2% and Hong Kong’s Hang Seng fell 0.4%, he said.

“We expect the market to open with insignificant changes in the MOEX Russia Index close to 2,120. The levels of 2,110 and 2,100 will become the closest support, while 2,130 and 2,140 will act as resistance. After a neutral start, the index is likely to switch to consolidation. The uncertain external background favors no strong movements of the local market,” he said.

Oleg Shagov, head of investment company Solid’s research department, also said that the MOEX Russia Index is likely to open close to 2,120, while investors will track the release of data on business activity in Russia, the Eurozone, and the U.S.

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