Russian stocks to open flat on weak oil price trends, cbank meeting

MOSCOW, Jul 29 (PRIME) -- The Russian stock market will open near Thursday’s closing levels on Friday because oil is demonstrating lackluster dynamics, and investors are waiting for a key rate decision by the central bank, analysts said.

“The ultimate influence of the external factors significantly affecting the behavior of the Russian financial market has been close to neutral today at the start of the day,” Oleg Shagov, head of investment company Solid’s analytical department, said.

Brent futures are fluctuating around a U.S. $42.6 per barrel level, trying to rebound from a recent three-month low. U.S. stock market futures are little changed, Asian markets are easing, the European premarket signals a neutral opening -- all these factors make the background for the Russian session start neutral, Shagov said.

Asian investors are disappointed by the Bank of Japan’s decision not to change the interest rate, which leaves small chance for a rebound on the Russian market, Olma senior analyst Anton Startsev said.

The Russian central bank will announce its key rate decision later on Friday, which will strongly affect the market trends, Shagov said.

The U.S. will publish a report on its gross domestic product (GDP) for April–June at 3:30 p.m., Moscow time, which will be the most important foreign data release, Startsev said.

On the corporate stage, the board of directors of mobile operator MTS will meet to recommend the dividend amount. Hydropower giant RusHydro and Norilsk Nickel may publish a financial and an operating report respectively, which is also seen as important events, Shagov said.

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