Russian stocks edge down on worsening global background

MOSCOW, Jan 21 (PRIME) -- The Russian stock market has been edging down during the morning session and can continue its negative dynamics later in the day on Friday in light of a worsening external environment and ahead of the weekend, analysts said.

“Overheated crude is losing around 1.5% on the U.S. Energy Department’s report showing a rise of the inventories by 0.5 million barrels instead of the expected 0.9% fall. Of course, the weak Russian stock market is unable to grow with such an external background,” Alor Broker analyst Alexei Antonov said.

Besides, Russian stocks can decline due to closing of long positions and profit-taking ahead of the weekend, which can bring negative news, he added.

Senior analyst at Promsvyazbank Dmitry Monastyrshin said that investors will focus on a meeting between U.S. State Secretary Antony Blinken and Russian Foreign Minister Sergei Lavrov, and a lack of progress can trigger further sales of Russian OFZ government bonds so that their yield can reach over 9.5% annually.

Antonov said that the situation will continue to pressure the ruble, which looks unusually strong.

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