Russian stocks can correct down as global environment worsens

MOSCOW, Aug 11 (PRIME) -- The Russian stock market is likely to correct down slightly or consolidate during the day on Friday in light of a moderately negative foreign background and ahead of the weekend, analysts said.

“We expect sales in Russian stock to strengthen at the start of the trading session amid a worsening situation on the energy market. Besides, market participants can begin taking profit from long positions ahead of the weekend, which will also pressure the local market,” senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said.

As a result, the MOEX Russia Index can correct downwards, but it likely to stay within the range of 3,100–3,150, he added.

Zvarich sees the global sentiments as moderately negative with the main Asian benchmarks falling by up to 1.4%, and the core U.S. indices futures consolidating at the levels of their previous closing. The nearest Brent oil futures are losing 0.1% to U.S. $86.3 per barrel.

Alexei Golovinov, chief analyst at PSB Bank, expects the MOEX Russia Index to consolidate within the range of 3,150–3,200 during the day amid lower investor activity.

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