Russian stocks can fall slightly on diplomatic, political issues

MOSCOW, Mar 16 (PRIME) -- The Russian stock market will likely decrease slightly at the opening on Friday due to diplomatic and political conflicts affecting the mood of investors, analysts said.

“The external background remains comparably unfavorable taking into account the influence of geopolitics and an emerging rise of the U.S. dollar,” Olma senior analyst Anton Startsev said.

Vitaly Manzhos, senior risk manager at investment company Nord Capital, said that a diplomatic conflict with France concerning the poisoning of former Russian spy Sergei Skripal, Russia’s planned response to the expulsion of diplomats by the U.K. and extension of the U.S. blacklist including Russian officials and entities, as well as a statement that the U.S. sanctions concerning Crimea will remain in place, are extremely important to investors ahead of the Russian presidential elections.

He said that a Thursday rise in oil futures will limit the negative dynamics.

As a result, the MOEX Russia index will likely open with a small downward gap at 2,270–2,275, Manzhos said. The closest support levels are 2,260 and 2,250 and the resistance levels are 2,290 and 2,300.

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