Russian stock market may decrease at opening on falling oil

MOSCOW, Aug 16 (PRIME) -- The Russian stock market is likely to decline at the opening of Tuesday amid mixed dynamics of the global floors and falling oil, analysts said.

“We expect a correctional decrease of our stocks at the start of trade, they will experience pressure from the oil price dynamics. The MOEX Russia Index is likely to retreat below 2,160 points,” senior analyst at financial supermarket Banki.Ru Bogdan Zvarich.

Purchases may become active later in the day and help the Russian market to win back morning losses, Zvarich also said, adding that the market may go toward the closest resistance of 2,200 points.

The morning moods of the global markets can be called conflicting, Zvarich also said. The leading Asian floors are rising within 0.7%, except for Japan that is consolidating at the closing level, while the U.S. main indices futures are losing about 0.1%. Negative dynamics prevail on the energy sources markets, with the next futures on Brent oil losing 0.9% to U.S. $94.3 per barrel.

Alexei Antonov, head of the investment consulting department of Alor Broker, said that the Russian market may try and continue upward dynamics of Monday’s closing in the first half of the day. But weak oil and proximity of the resistance of 2,180 points will get in the way of bulls.

Otkritie Research leading analyst Andrei Kochetkov said that the oil prices are decreasing on expectations of a rise in the U.S. production, Iran’s oil proposals, and a fall in consumption amid a global slowdown and more quarantine measures in China.

The news flow will include the releases of the economic sentiment indices in Germany and the E.U. and of the number of issued building permits in the U.S.

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