Russian stocks to open mixed on low oil price

MOSCOW, Dec 7 (PRIME) -- Russian stocks are likely to open mixed on Monday as the ruble may fall further dragging the RTS down at the opening, but supporting the MICEX index close to flat, analysts said.

“From the point of view of technical analysis, the possibility of a further downward correction of the RTS index is still there. The unexpected OPEC decision…is still a pressuring factor for oil prices, which may weigh upon prices of liquid Russian securities. The worsening of the commodity market may result in the ruble weakening on the currency market,” Anton Startsev, a senior analyst at investment company Olma, said.

The Brent oil price fell 0.655% to U.S. $42.72 as of 9.06 a.m. Moscow time. U.S. stock index futures are virtually flat, while main Asian floors are showing mostly positive dynamics.

“The influence of key factors that have a significant influence on the Russian stock market, is mixed at the beginning of the day…We expect the Russian market to open close to 1,755 of the MICEX index and suppose that it may claw back some of last week’s losses during the day, if the external background improves,” Oleg Shagov, senior analyst at investment company Solid, said.

The mixed external background provides no drivers for any strong movements at the opening of the trading session, Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

“We expect the market to open with insignificant changes at around 1,755. The levels of 1,740 and 1,730 will be support levels, while 1,770 and 1,790 will act as resistance,” he said.

But a supply glut on the oil market, the absence of de-escalation of the Russia–Turkey conflict and a nearing meeting of the U.S. Federal Reserve System, which may increase its key rate, will weigh upon the Russian market, and push it down on Monday, Pavel Salas, a general director for Russia and CIS at brokerage company eToro, said.

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