MOSCOW, Jan 20 (PRIME) -- Russian stocks are likely to open flat on Friday as the external background provides it with no strong drivers, while foreign investors will keep quiet ahead of inauguration of U.S. President-elect Donald Trump, analysts said.
“We expect the Russian stock market to open around 2,160 of the MICEX index and suppose that the stock indicator may rebound later in the day after seven consecutive days of losses, which is the longest period of contraction for the past 15 years for the index,” Oleg Shagov, head of investment company Solid’s research department, said.
The background prior to the opening of the trading session is mixed with the Brent oil price fluctuating close to U.S. $54.4 waiting for an upcoming meeting of the OPEC committee for control of oil production, U.S. stock index futures edging up, and major Asian floors showing no common dynamics, Shagov said.
Alyona Afanasyeva, a senior analyst at Forex Club group of companies, said that major trading in the Brent oil will happen during the U.S. trade session after Trump’s inauguration has taken place. The event may have an indirect impact on oil through the U.S. dollar rate.
“If Trump reiterates his concern regarding a strong U.S. currency, it will have an impact on the dollar and support a rebound of the Brent oil price to about $55.80 per barrel,” Afanasyeva said.
But Timur Nigmatullin, an analyst at investment company Finam, said that the MICEX may grow at the beginning of the day thanks to a report that China’s gross domestic product increased by 6.8% in October–December 2016 against an expected growth of 6.7%.
“It looks like the MICEX index will show growth of about 0.5% at the beginning of the day…But purchases on the market will be restrained due to uncertainty coming from inauguration of Trump,” Nigmatullin said.
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