Russian stocks can decrease on discouraging environment

MOSCOW, May 11 (PRIME) -- The Russian stock market can edge down on Wednesday thanks to a discouraging external background and persisting geopolitical risks, analysts said.

“We expect sales in Russian shares to prevail after a lengthy weekend. Negative changes of the external background and persisting geopolitical risks will pressure the local market. As a result, the MOEX Russia index can test last week’s lowest of slightly above the 2,370 mark,” senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said.

If the market falls below the mark, the downward movement can speed up due to closing of long positions, he added.

Director of BCS Broker’s stock market experts department Vasily Karpunin said that the global environmental does not look positive. Sales were seen on most stock exchanges in the past few days, and the U.S. S&P 500 index once fell to below 4,000 so global investors prefer to leave risky assets.

The Brent oil price lost significant 8% during two days and is trading at around U.S. $104 per barrel on Wednesday, he added.

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