Russian stocks to open flat on no strong drivers

MOSCOW, Nov 17 (PRIME) -- Russian stocks are likely to open neutrally on Thursday as the external background offers no strong drivers for prices, analysts said.

“We expect to see the opening of the Russian stock market with insignificant changes around yesterday’s closure point of the MICEX index of 2,028.9, and suppose that the stock indicator may fall to the 2,020 point support level if the background worsens during the day,” Oleg Shagov, head of investment company Solid’s analytical department, said.

The Brent oil price is fluctuating around a U.S. $46.5 per barrel mark as the market is waiting for results of informal talks between Russia and OPEC to take place on Thursday and Friday, Shagov said.

U.S. stock index futures are slightly rising this morning after Wednesday losses, major Asian floors show no common dynamics, and the European trading session’s premarket signals a mixed opening, Shagov said.

“From the point of technical analysis, the most relevant scenario today is consolidation around 970–1,000 points of the RTS index,” Anton Startsev, a senior analyst at investment company Olma, said.

The U.S. debt market shows some stabilization, but the general condition of international markets does not allow to forecast a consistent inflow of money to emerging markets, Startsev said.

But Timur Nigmatullin, an analyst at investment company Finam, said that the MICEX index may open with an about 0.5% increase even despite an uncertain background.

“The index may be supported by an uncertain situation regarding the corruption scandal in the Economic Development Ministry, and a deputy prime minister said that preparations for privatization of 19.5% in Rosneft are still going on. Moreover, the Russian market may continue to price in the (Donald) Trump victory,” Niglamtullin said.

The U.S. Federal Reserve System’s Chairwoman Janet Yellen is to give her first speech to the U.S. Congress after Trump was elected as the next president of the U.S., which may contain hints at the increase of the Fed’s key rate.

Startsev also said that investors will track the U.S. housing construction data later in the day.

Shagov added that among local corporate events, investors will focus on financial results of mobile operator MTS and fertilizer producer PhosAgro, as well as on recommendation for July–September dividends from the board of directors of steelmaker Novolipetsk Steel (NLMK).

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