Moderately negative global sentiments can drag Russian market down

MOSCOW, Apr 19 (PRIME) -- The Russian stock market can open with some sales amid a moderately negative foreign background, and consolidate during the day on Wednesday, analysts said.

“Sales can appear at the start of the trading session on the Russian stock market in light of a worsening external background and overbought local shares. As a result, the bears will try to seize the initiative and pull the market below 2,600,” senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said.

He added that the global market sentiments look moderately negative. The main Asian markets are losing up to 0.3%, except for the South Korean market that is adding 0.3%. The core U.S. indices futures are falling by around 0.2%, and the nearest Brent oil futures are decreasing by 0.3% to U.S. $84.5 per barrel.

Alexei Golovinov, chief analyst at PSB Bank, said that a lack of negative news can encourage the MOEX Russia Index to consolidate above the 2,600 mark with steel producers and the consumer sector performing better that the others.

But correction sentiments can return very fast as the market is very vulnerable to the news background, he added.

End