Russian stocks to open flat on oil price fall, favorable environ

MOSCOW, Jun 27 (PRIME) -- The Russian stock market is likely to start the Monday trading little changed as the external background favors purchases, while the falling oil prices undermine the sentiment, analysts said.

“We expect trading in Russia to start with a 1% change in the MOEX Russia Index in the range of 2,365–2,415. The levels of 2,350 and 2,340 will act as the closest support, while 2,420 and 2,440 will become the resistance,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

The index will continue Friday’s consolidation as the external background does not favor any rapid upward or downward movement. It is moderately positive as the futures for the U.S. stock indices gained 0.1–0.5%, the Chinese Shanghai Composite index 0.7%, and the Japanese index Nikkei225 1.3%. But the Brent oil price lost 0.2%, he said.

“Before the NATO summit in Madrid on Tuesday–Thursday, the geopolitical situation is unlikely to soften in the world, and the MOEX Russia Index is unlikely to have a chance to break through the 2,500 resistance level,” Andrei Vernikov, head of investment company Univer Capital’s department for investment analysis and education, said.

Russia’s formal default on its external debt does not scare investors, it has already been priced in, he said.

The news that the G7 countries agreed to ban imports of gold from Russia only cements the current situation because Russia’s gold supplies to the E.U. has contracted significantly. The shareholders of gold producers will not be pleased as the gold prices will rise, but the consumer market has narrowed for long. Russia will sell a lot of gold to India and China, Vernikov added.

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