Russian stocks to open flat on mixed external background

MOSCOW, Apr 11 (PRIME) – The Russian stocks are likely to open unchanged on Thursday as the external background provides mixed signals for local players, analysts said.

“We expect the MOEX Russia Index to open with insignificant changes of 0.1–0.3% in the range of 2,575-2,580. The levels of 2,570 and 2,560 will become the closest support, while the levels of 2,590 and 2,600 will become the resistance. After a flat start of the day, the MOEX Russia Index may switch into consolidation as a mixed morning background favors that,” Vitaly Manzhos, senior risk manager at Algo Capital, said.

In the morning, the U.S. stock index futures remained almost flat, the Brent oil price lost 0.4% after a significant increase on Wednesday evening, Japan’s Nikkei225 index gained 0.1%, and Hong Kong’s Hang Seng lost 0.9%. Manzhos said that the morning contraction of oil prices was only a moderate correction after a new mid-term record.

Georgy Vashchenko, head of investment company Freedom Finance’s department for trade operations on the Russian stock market, said that the Russian stock market may open flat or with a 1% fall, as the market is very unlikely to push higher after closing at a record high on Wednesday.

Alexei Antonov, analyst at Alor Broker, said that the MOEX Russia Index has been growing for 10 consecutive trading sessions and is ready for profit taking and a downward correction. Weak Wednesday dynamics of the U.S. stocks and a morning contraction of oil prices may result in a slump of Russian stocks in the morning, but even this correction may not be long.

“Even if the market corrects downward, a mid-term upward trend will remain, it is only a matter of time for the MOEX Russia Index to climb above 2,600,” Antonov said.

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