Russian stock may ease at opening due to controversial background
MOSCOW, Apr 11 (PRIME) -- The Russian stock market is likely to edge down at opening and consolidate with high volatility during the day on Wednesday following previous turmoil, analysts said.
“The return of the Brent futures to above U.S. $70 provides reasons for a further bounce back in some of oil and gas stocks. However… geopolitical risks and a possibility of new U.S. sanctions are a strong negative factor for Russian stocks,” Olma senior analyst Anton Startsev said.
It is premature to speak about a persistent recovery, and the stock market is likely to see high volatility again, the expert added.
Alpari senior analyst Anna Bodrova said that the technical background points to a possible rise of the Brent crude price to $72.50 per barrel, which may be supportive for the local stock market.
Sergei Kozlovsky, head of the research department of forex broker Grand Capital, said that the ruble is still under pressure in light of a significant decline of foreign investor’s interest in OFZ government bonds, and it will be difficult for Russian stocks to advance on internal demand only.
Analysts of investment company Nord Capital said the MOEX Russia Index is expected to ease around 0.5% to 2,165 at opening to turn to volatile consolidation later in the day.