Russian stocks to open flat waiting ahead of speech by Draghi

MOSCOW, Oct 20 (PRIME) -- Russian stocks are likely to open close to flat on Thursday as the neutral background provides no grounds for serious purchases while investors are waiting for a speech of the European Central Bank’s (ECB) President Mario Draghi on the E.U. monetary policy, analysts said.

“The external background provides us no reason for strong movements on the market. The Brent oil prices are holding above U.S. $52 per barrel, but no significant growth is seen despite a noticeable contraction of crude oil reserves in the U.S. Talks of leaders of (the Normandy Four countries) on the situation in Ukraine and Syria also provided no signals for the market,” investment company Olma’s leading analyst Anton Startsev said.

Oleg Shagov, head of investment company Solid’s research department, said that the background prior to the opening of the trading session is neutral due to the easing oil price, while the U.S. stock index futures are edging up and Asian floors are showing mostly positive dynamics.

“We expect the Russian stock market to open close to the yesterday’s MICEX index figure of 1,967.5,” he said, adding that the most important event of the day will be the ECB’s meeting on the E.U. monetary policy, after which Draghi is to give a speech at a news conference.

Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said that the external background favors a neutral opening of the trading session. “We expect the market to open with an insignificant movement in a 1,965–1,970 range of the MICEX index. 1,960 and 1,950 will remain the closest support levels, while 1,980 and 1,990 will act as resistance levels,” he said.

U.S. jobless claims statistics may provide some impact on the local market, Manzhos added.

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