Russian stocks can fall as US mkt slides, Saudis start price war

MOSCOW, Mar 13 (PRIME) -- The Russian stock market can continue falling at the opening on Friday as the U.S. markets plunged on Thursday in a worst trading session since 1987, and Saudi Arabia is proactively trying to oust Russia from the oil market by axing the prices, analysts said.

“The markets remain in a state of uncertainty which so far bars long-term investors from returning and makes us talk about preservation of risks of a deeper RTS Index’s downward correction,” investment company Olma’s senior analyst Anton Startsev said.

Sergei Drozdov, analyst at investment company Finam, said that the U.S. markets were disappointed by the modest fiscal measures and flight restrictions imposed by the White House.

“Investors now want to see more incentives and more actions by world’s central banks in order to prevent destructive fallout of the coronavirus,” Drozdov said.

The oil prices fell by 8.29% to U.S. $32.88 on Thursday. According to Drozdov, besides the effect of falling financial markets worldwide, the prices were dragged down by the efforts of Saudi Arabia to combat Russia on the oil market, after Moscow quit the OPEC plus deal. “History demonstrates that there are no winners in trade wars, so the battling ides will sooner or later have to sit down at the negotiation table,” the analyst said.

Drozdov put the support level for the MOEX Russia Index at 2,194 and 2,065. The resistance notch is 2,400 and 2,450. The local support level for the RTS index stands at 910 and 880, and resistance at 950 and 1,017.

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