Russian stocks may correct down amid negative foreign background

MOSCOW, Jan 21 (PRIME) -- The Russian stock market may edge down on Tuesday in light of a discouraging foreign background to reduce overheating, which formed in the past sessions, analysts said.

“Growth will stop today, and the market will begin decreasing. Asian floors are seen significantly lower, the U.S. indices futures are falling around 0.4%, and crude is losing nearly 0.5%,” Alor Broker analyst Alexei Antonov said.

Metals giant Norilsk Nickel, whose shares are considerably overbought, may become the biggest loser thanks to a 0.5% fall in the global nickel price, Antonov also said.

Gas giant Gazprom is also seen week, but the stock has been very unpredictable lately, so it can overperform the market. Top bank Sberbank has just consolidated over 262 rubles per share, which is going to become the support line for the stock, he added.

Antonov also said that the new government composition is to be announced today so investors should watch the news closely.

Olma senior analyst Anton Startsev said that growth of the RTS index may stop to eliminate the local overheating.

Investors in Russia are also likely to follow operating results releases for October–December from integrated steel producer Magnitogorsk Iron and Steel Works (MMK) and real estate developer LSR Group, as well as news from the World Economic Forum that is to start in Switzerland’s Davos.

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