MOSCOW, Nov 22 (PRIME) -- The Russian stock market will likely decrease on Friday at the trading session start due to an expected pressure on Gazprom and speculations surrounding the U.S.–China deal, analysts said.
“The Russian stock market closed yesterday with a modest rise of 0.2% of the MOEX Russia Index, and all growth was supported by an increase of Gazprom. As has become known today in the morning, placement of the company’s shares will take place at 220.72 rubles, (13% below yesterday’s closing price), which might therefore exert pressure on the shares and, taking into account Gazprom’s weight in the index, the entire MOEX Russia Index at the start of trade,” Mikhail Poddubsky, senior analyst at Promsvyazbank, said.
Gazprom Gazoraspredeleinye, a subsidiary of Gazprom, plans to sell 850.591 million shares in the parent company.
Finam analyst Sergei Drozdov said that on Thursday, the global market participants continued to take profit as the prospects of the U.S.–China trade agreement are still unclear.
One the one hand, both chambers of the U.S. Congress approved a draft law on the situation in Hong Kong. On the other hand, China’s Deputy Prime Minister Liu He said he was cautiously optimistic about signing a preliminary agreement, while South China Morning Post reported that the U.S. could postpone the increase of tariffs on the Chinese goods, which was to happen on December 15.
Drozdov said that the news that the OPEC plus nonmember states and Russia could agree to roll over the deal until June 2020 boosted oil prices about 2% on Thursday evening.
According to Drozdov, the support level for the MOEX Russia Index stands at 2,920 and 2,900. The resistance notch is 2,950. The local support level for the RTS index stands at 1,450 and 1,430, and resistance at 1,458.
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