Russian stocks can fall on sanctions fears, foreign mkt drop

MOSCOW, Apr 4 (PRIME) -- The Russian stock market will likely ease at opening on Wednesday on the back of investor concerns over possible stricter sanctions and lower foreign indices, analysts said.

“Continuation of consolidation of the RTS Index remains a likely scenario for the nearest future. While dividend expectations support demand for some securities, the external background does not favor a restart of capital inflow to the market at large,” Anton Startsev, a senior analyst at investment company Olma, said.

Vitaly Manzhos, a senior risk manager at investment company Nord Capital, said that the MOEX Russia Index is to fall 0.2–0.3% to 2,260at opening. The levels of 2,250 and 2,240 are the closest support and 2,270 and 2,280 is the resistance level.

According to Manzhos, the market will also react to the risks of stricter sanctions against Moscow.

He also said that the U.S. stock market futures fell by about 0.5% and the Asian markets are mixed, which makes the external background for the Russian trading session moderately negative.

The Brent futures are traded slightly below U.S. $68 per barrel after the American Petroleum Institute (API) reported a sudden decline of U.S. crude reserves, Startsev said.

Traders see the release of crude reserve data by the U.S. Energy Department, inflation and unemployment figures for the euro zone, the U.S. business activity in the services sector and industry as market driving information, Startsev said.

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