Russian stocks to open lower on mixed background

MOSCOW, Jul 28 (PRIME) -- Russian stocks are likely to open slightly lower on Monday amid mixed background, analysts said.

“We expect a negative market opening,” Zerich Capital Deputy CEO Andrei Vernikov said.

“I do not see anything bad in it. Investors will end their holidays and will buy cheaper Russian stocks with more willingness.”

The MSCI Emerging Markets index hit the ceiling of a six-month bullish channel last week and slipped by 0.4% on July 25.

The background prior to the opening of the Russian markets is mixed. U.S. futures are changing insignificantly, Asian floors are showing no single dynamics and Brent oil prices are fluctuating around U.S. $108 per barrel.

Olma’s senior analyst Anton Startsev said that the technical analysis shows the possibility of a further downward correction of the RTS index.

“The uncertainty with the E.U. possibly expanding sanctions on Russian companies is a limiting factor for the buyers,” he said.

But Promsvyazbank senior analyst Oleg Shagov said that the market will open flat and will only fall below 1,375 points within five trading days with a probability of 85%.

Investors will focus their attention today on the release of the U.S. service sector Markit PMI and unfinished housing sales, Shagov said.

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