Russian stocks to open flat on neutral external background

MOSCOW, Apr 13 (PRIME) -- The Russian stock market is likely to start Tuesday’s trading unchanged on lackluster external background, analysts said.

“We see Monday’s growth as only a technical rebound. Sales may return to the market any moment when new threats emerge or old threats are exacerbated,” Alor Broker senior analyst Alexei Antonov said.

“So far, the external background is neutral – the futures for the U.S. stock indices continue consolidation near their historical highs, oil prices are slightly rising, but prices for almost all commercial and precious metals are falling. That is why we expect opening near the previous closing.”

Algo Capital senior risk manager Vitaly Manzhos said that higher oil prices create conditions for the MOEX Russia Index to open with minimal changes or with a very slight increase.

The Brent oil price gained 0.363% to U.S. $63.51 per barrel as of 9.13 a.m. Moscow time, according to the ICE exchange.

“We expect the MOEX Russia Index to open with a slight increase of up to 0.3% in the range of 3,520–3,535. The levels of 3,500 and 3,480 will act as the closest support, while 3,550 and 3,570 will become significant resistance,” Manzhos said.

“After moderate growth at opening, the MOEX Russia Index will most likely switch into consolidation, as the external background is not that positive to stimulate faster growth of the index.”

The Russian stock market will focus on the oil prices and of the U.S. market as no economic statistics that could be important for the national market will be published, he added.

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