Russian stock market may decline at opening amid negative backdrop

MOSCOW, Oct 11 (PRIME) -- The Russian stock market may open with a decrease on Tuesday amid the negative external background and expectations of the G7 meeting over Ukraine, analysts said.

Alor Broker’s investment consulting department head Alexei Antonov said that the Russian market “is unlikely to be able to continue solid growth.”

The market fell just mere 1.1% on Monday despite a negative start of the trading session and dividend gaps of Gazprom and Tatneft, Antonov said, adding that it was more of a technical rebound than a recovery of the market. In addition to that, the resumed decrease of the bond market and the rise of the U.S. dollar suggest that investors are avoiding risks.

Senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said that “the MOEX Russia Index may turn to growth. A correctional rise started from yesterday’s minimums may be continued, and the market may return to the 1,950 range as a result.”

The external background is negative prior to the start of trading in Russia. The leading Asian bourses are losing within 2.7% and the futures on the U.S. main indices are falling 0.5%. The next Brent oil futures decreased 0.3% to U.S. $95.9 per barrel.

The news flow will include meetings of the IMF and the World Bank, as well as an emergency virtual meeting of G7 leaders over Ukraine.

Veles Capital’s analyst Yelena Kozhukhova said that the G7 meeting “is unlikely to bring positive signals for Russian investors.”

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