Russian stock market can edge down on falling crude prices

MOSCOW, Sep 26 (PRIME) -- The Russian stock market can test new lows on Monday in light of a worsening foreign background with oil prices falling to below U.S. $85 per barrel, analysts said.

“The external background does not look positive. The U.S. dollar index is rising causing a fall in energy prices. Oil is losing more than 1% breaking through the $85 per barrel support line, and the next target is $80 per barrel,” Alor Broker analyst Alexei Antonov said.

“We do not hope that the market can recover in such conditions. Unless the external background improves due to any reason, the MOEX Russia Index is likely to test the support area of 2,000–2,030 and is highly likely to break through it,” he added.

Antonov also said that the market can be supported by gas giant Gazprom’s decision on dividends for January–June, as well as oil company Lukoil’s decision on profit distribution.

PSB Bank senior analyst Yegor Zhilnikov said that the ruble strengthened significantly last week as market participants were selling currencies of the non-friendly states ahead of possible sanctions against the National Clearing Center.

The U.S. dollar can return to the 57–60 rubles per dollar corridor this week, he added.

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