Russian stocks to open flat on rising oil, geopolitical tensions

MOSCOW, Feb 17 (PRIME) -- Russian stocks are likely to open flat on Tuesday as the effect of rising oil prices will be negated by a shaky truce in the east of Ukraine, analysts said.

“No reasons for major movements at the market have been registered yet. The oil price dynamics may provide some support to Russian securities, but the geopolitical factor is still a source of uncertainty,” Olma’s senior analyst Anton Startsev said.

The Brent oil price edged up1.12% to U.S. $62.09 per barrel as of 8.43 a.m. Moscow time.

After the truce came in force on February 15, it has been repeatedly violated by both sides.

“The recent growth of the Russian market was underpinned by expectations of a ceasefire in Ukraine, which will consequently lead to suspension of new Western sanctions. On Monday, we found out that the truce was only partially kept…This means that Russia’s actions to settle the conflict do not find a response, which gives us reason to think that the E.U. and the U.S. will continue to toughen their economic measures,” Vitaly Manzhos, analyst at Nord Capital, said.

“We expect the market to open with insignificant changes close to 1,800 of the MICEX index.”

Promsvyazbank also expects the MICEX index to open flat, it said in a research note, adding that consolidation close to the index’ annual highs is possible during the day.

During the day, investors will also closely watch for U.K. retail prices data and Germany’s ZEW Survey Economic Sentiment for February.

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