Russian stocks continue to edge down, dynamics unpredictable

MOSCOW, Jan 19 (PRIME) -- The Russian stock market has continued its decline during the morning trading session on Wednesday and looks absolutely unpredictable at the moment, analysts said.

“Sales continue today… The next technical goal of the MOEX Russia Index’s fall is 3,100, but one should not rely on the technical analysis now, the support line can the broken through very fast. We will not give any recommendation, the market is absolutely unpredictable. A steep rebound can begin at any minute, but the decrease can deepen as well,” Alor Broker analyst Alexei Antonov said.

He also said that the external background looks moderately negative with the main U.S. indices futures losing around 0.6–0.9% and the Brent oil price rising 1%, and added that the global situation will have very low impact on the Russian stock market.

Antonov said that the ruble is relatively stable, but the currency market can get overtaken by the panic at any moment.

Andrei Vernikov, head of investment analysis department of Investment Group Univer, said that the geopolitical risks are just one of the reasons for the correction, and the major reason is expectations of a significant tightening of the monetary policy by the U.S. authorities.

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