Analysts expect the opening of the Russian share market on Friday in the area of 1765 points on the MICEX index. Hinder further growth of the market may be worsening of the external situation.
MOSCOW, 6 Nov. Elena Likova. Stock market and currency market of the Russian Federation will open in a neutral way, then, does not exclude the transition of the MICEX index in “flat” against the background of profit fixation by the players before the weekend, analysts said.
External background before the opening of the session mixed but investors will try to pay attention to only the positive moments, for example, a technical rebound in commodity quotes, says Anna Bodrova of Alpari.
The stock market
Oleg Steps from the company’s “solid” expect neutral opening of the Russian share market on Friday in the area of 1765 points on the MICEX index.
“The Friday effect, which is manifested in the intention of investors to take profits after lifting during the week, may prevent continued growth and even trigger a correction. The 1740-1750 zone points that were previously a barrier to increase of the MICEX index, is now able to act as his support,” he commented.
On Friday morning the Russian stock market will continue to grow and may grow by 0.1-0.2%, says Bodrov. The MICEX index will hold the last auction of the week in the range 1745-1785 points, she adds.
Vitaly Manzhos from the Bank “Education” is awaiting the opening of the market with insignificant deviation on the MICEX index in the range 1760 — 1770 points. The closest significant support levels 1750, 1725 points, and the resistance will make a mark of 1785, 1790 points.
“Probably after the neutral start of trading, the MICEX index after the lateral movement near the opening level. This contributes to ambiguous external background,” he commented.
Ilya Frolov of Promsvyazbank notes the deterioration in the external environment that may hinder further growth of the market. “First of all, it is worth noting the risks of the next wave of falling oil prices on the background of an unfavorable combination of factors,” he explains.
Thus, the opening of trading on Friday will take place in a moderately negative zone throughout the day the likely rollback of the MICEX index by 1-1. 5% in the region of 1735-1745 support points, predicts the analyst.
The foreign exchange market
On the foreign exchange market in early trading perhaps a lull, but expectations of rising interest rates in the U.S. support the dollar, says the analyst of investment “OLMA” Anton Startsev.
According to Bodrova, dollar will be traded on Friday in the hallway 63,20-64,10 ruble. The main auction will be on the mark 63,70, when the consolidation above it the bulls will try to break through on, she says.
The European currency will hold Friday in the range 68,75-69,45 ruble, the analyst adds.
External factors
U.S. stock indexes on Thursday fell amid weekly data on applications for unemployment benefits.
Industrial index Dow Jones has decreased on 0,02% — to 17863,43 point, high-tech NASDAQ — on 0,29%, to 5127,74 points, the index of wide market S&P 500 by 0.11% to 2099,93 item.
Stock futures US the morning are trading mixed: the S&P grows on 0,02%, NASDAQ by 0.06% and Dow Jones decreased by 0.02%.
Most Asian stock indexes are rising by 0.04% and 1.5%, while Singapore’s Straits Times index decreased by 0.36%.
The price of oil hovers around 48,31 USD per barrel Brent (plus 0.42% to the previous fixing).
The Euro is 1,0881 1,0873 of the dollar against the dollar at the previous closing.
The results of the previous auctions on the Russian market
The Russian stock market on Thursday closed mixed amid falling ruble to the dollar, the growth leaders were the shares of “Transaero” and Bank “URALSIB”.
The MICEX index to closing has grown on 0,15% — to 1766,28 points (day rose to 1784,42 item, updating the highest since March 5), the RTS index fell by 1.03% — up to 877,26 item.
The dollar calculations “tomorrow” on the basis of currency trading Thursday increased by 82 pennies — until 63,45 of the ruble, the Euro by 29 kopecks to the ruble of 68.96.
