Stocks to open flat on firming oil prices, start of US reporting

MOSCOW, Apr 12 (PRIME) -- The Russian stock market will likely open unchanged on Friday because growing oil prices will be offset by a lackluster trading in the U.S. ahead of the start of the reporting season, analysts said.

“The Russian stock market followed a (downward) correction scenario yesterday, and the Moscow Exchange Index fell by a little more than 1%, returning to 2,550. We think that the minimum correction goals have been achieved, and local overheating was at least partially removed,” Mikhail Poddubsky, chief analyst at Promsvyazbank, said.

“We see the external conditions for market opening as mostly neutral, therefore we expect consolidation of the index close to the current level today in the basic scenario.”

Alexei Antonov, analyst at Alor Broker, said that oil, which is rising from U.S. $70.5 per barrel, can support the Russian market to a certain extent.

The U.S. stock market indices closed Thursday’s session with marginal dynamics. According to Vadim Kravchuk, analyst at investment company Solid, market participants are waiting for a start of the reporting season with J.P. Morgan and Wells Fargo expected to post their reports on Friday.

Finam analyst Sergei Drozdov said that the support level for the MOEX Russia Index is 2,550 and 2,535, and the resistance levels are 2,570 and 2,590. The RTS index support level is 1,221 and resistance 1,235 and 1,247.

Antonov said that Sberbank may continue to fall on the news about possible purchase of retailer O’Key.

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