Low oil may drag Russian stocks down at opening

MOSCOW, Dec 11 (PRIME) -- The Russian stock market may open lower on Friday as falling oil prices will weigh on it, analysts said.

“Technical analysis shows a chance that a downward correction in the RTS index may restart. The external background provides no reason for purchases, as the Brent oil futures are trading below U.S. $40 per barrel, which implies further downward movement,” investment company Olma senior analyst Anton Startsev said.

The Brent oil price slid 1.65% to $39.46 as of 8.57 a.m. Moscow time, according to the ICE exchange. U.S. stock index futures are rising, but Asian floors are in the red zone.

The external background prior to the start of trading is mixed, but a weak oil market favors a negative start of trade, Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

“We expect the market to open with a moderate decrease of about 0.3% of the MICEX index in a 1,725–1,730 range. The levels of 1,720 and 1,710 will remain as the closest support levels, while 1,740 and 1,750 will again act as resistance,” Manzhos said.

Investors will focus on results of the Russian central bank’s meeting on its monetary policy, which are to be published on 1.30 p.m. Moscow time. Investors will also watch for the release of U.S. retail trade data, Startsev said.

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