Stocks seen opening flat ahead of central bank's key rate decision

MOSCOW, Oct 25 (PRIME) -- The Russian stock market will likely open with marginal dynamics on Wednesday, as the ruble is strengthening slightly ahead of Friday's meeting of the board of directors of the central bank when the key rate decision is to be made, analysts said.

"We expect that the MOEX Russia Index to hold near the annual peaks: we are still cautious about the shares of exporters because of a strong ruble but we expect demand for the sectors targeted at the national economy to strengthen with a skew towards more weighty stocks, firstly, banks," Promsvyazbank analyst Yevgeny Loktyukhov said.

Preparations for tax payments by exporters, the obligatory currency sales rule and expectations of an increase of the key rate by the central bank support the ruble, BitRiver financial analyst Vladislav Antonov said.

The Brent oil blend got 2.6% cheaperto U.S. $88.03 on the back of a decrease of tensions in the Middle East, strengthening of the U.S. dollar and weak E.U. data, he said. The prices recovered to $88.11 per barrel on Wednesday in the morning.

According to Loktyukhov, Lukoil could rise ahead of a decision on the dividends by the board of directors.

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