Idealess Russian stocks may fall as traders follow Ukraine woes

MOSCOW, Jul 11 (PRIME) -- A lack of strong ideas around the Russian businesses makes investors focus more on the Ukrainian crisis, which will cause a slight falling of the domestic stock market at Friday opening, analysts said.

“No strong market drivers have appeared, but the technical analysis data does not rule out a possibility of deeper downward correction as attempts of the RTS index to consolidate at a level beyond 1,400 points were unsuccessful. And this implies that the index may reach the lower bound of the consolidation range near 1,330 points,” Olma’s senior analyst Anton Startsev said.

The ongoing Ukrainian crisis will not let Russian stocks grow because there are no strong market ideas for any significant number of companies, Moscow Securities Center analysts said in a research note.

There are certain hopes that after Thursday’s news that Portugal suspended stock exchange trade of one of the largest country’s banks Banco Espirito Santo after its shares fell 17%, some investors will sell European assets and buy securities of developing countries, Andrei Vernikov, Zerich Capital deputy CEO, said.

Investors should close their positions to reopen them in two weeks. Prices will be lower after Gazprom closes the shareholder register for dividends, Vernikov said.

Magnit’s shares will continue their growth after the company published the financial results for April–June, Moscow Securities Center analysts said.

End