MOSCOW, Dec 13 (PRIME) -- The Russian stock market is more likely to decrease at the opening on Wednesday as oil prices continue to decrease and drag the market down along with the strengthening ruble, analysts said.
“Sales are likely to continue at the start of trading in Russia today. The worsened situation on the energy market, where the nearest Brent oil futures retreated to the range of U.S. $70–75 per barrel, will exert pressure on local shares and may contribute to continuation of negative dynamics,” financial marketplace Banki.ru’s senior analyst Bogdan Zvarich said.
The MOEX Russia Index, which closed at 3,019.89 on Tuesday, may go down to below the mark of 3,000, Zvarich said.
In the morning prior to the start of trading in Russia, Brent oil stabilized at $72.94 per barrel, but the risks of further decline to $66 remain, BitRiver’s financial analyst Vladislav Antonov said, adding that the fall may be curbed by geopolitical tensions in the Middle East, which threaten to disrupt supplies.
Brent oil fell to U.S. $73.37 per barrel on Tuesday after the U.S. Department of Energy released its revised forecast for oil production and demand, Antonov said.
Alexei Golovinov, chief analyst at PSB Bank, also said that the MOEX Russia Index is likely to finish the trading session today below 3,000. “Still, there are no factors that could turn the market up. The falling oil prices and the strengthening ruble have negative impact on the stock market. Sales increase in the oil and gas segment is not ruled out,” he said.
Investors will wait for a decision of the U.S. Federal Reserve, which is to meet later in the day and is expected to keep the key rate at 5.5%, Zvarich said.
Global markets sentiment is mixed, with Asian floors loosing within 0.9%, except Japan, which increased 0.3%. Futures on main U.S. stock indices are edging up 0.1%, Zvarich said.
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