Russian stocks can fall at opening due to unfavorable background

MOSCOW, Jun 20 (PRIME) -- The Russian stock market can edge down at the opening on Monday, and consolidate later in the day amid a slightly negative global environment, analysts said.

“Sales can continue to prevail at the beginning of the trading session of the Russian stock market on the back of a fall in crude prices, seen on June 17. The MOEX Russia Index can decrease to 2,320–2,340 and consolidate within the range later in the day,” senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said.

From the technical point of view, the market continues to move within a convergent triangle with a base of April’s wave of recovery, and the withdrawal from the figure will mark the direction of the market’s medium-term movement, he added.

Zvarich also said that the external environment looks moderately negative. Main Asian markets are losing up to 2.5%, with China, rising by 0.1%, as the only exception. The core U.S. indices futures are consolidating slightly above June 17’s closing, and the Brent oil price is correcting upwards by 0.1% to U.S. $113.2 per barrel after a significant fall.

Alor Broker analyst Alexei Antonov said that investors can keep on taking profit in oil company Lukoil’s shares, but are likely to buy the shares of oil major Rosneft.

Georgy Vashchenko, head of investment company Freedom Finance’s department for trade operations on the Russian stock market expects mixed dynamics on the Russian stock market.

The MOEX Russia Index is likely to be trading within the range of 2,350–2,400, and the ruble can continue to advance to 55 rubles against the U.S. dollar, he said.

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