Russian stocks to open flat on neutral external background

MOSCOW, Jun 24 (PRIME) -- The Russian stock market is likely to start Thursday’s trade unchanged on the lack of drivers from abroad, analysts said.

“We expect the MOEX Russia index to open with a moderate change within 0.1–0.3% in the range of 3,825–3,850. The levels of 3,820 and 3,800 will act as the closest support, while 3,860 and 3,870 will become the resistance. After a neutral start of the day, the MOEX Russia Index is likely to switch into consolidation, and the relatively stable condition of the external background in the morning favors that,” Algo Capital’s senior risk manager Vitaly Manzhos said.

Alor Broker’s senior analyst Alexei Antonov said that gas giant Gazprom looked attractive because natural gas prices increase as the Western consumers filling their underground gas storages before the winter.

At the same time, the unusually high air temperatures boost demand for power as air conditioners work overtime meaning that the power plants need more gas benefitting the shares of Gazprom and Novatek, he said.

Manzhos also said that investors would focus on dynamics of oil futures and on the start of trade in the U.S. later in the day. Besides that, the U.S. is to release an important block of macro statistics data in the second half of the day, including the final estimate for gross domestic product (GDP) in January–March, May statistics for orders on durable goods, and weekly data on jobless claims.

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