Russian stocks may correct down on negative environ, falling oil

MOSCOW, Oct 16 (PRIME) -- The Russian stock market may consolidate or correct downwards on Friday thanks to declining risk appetite of foreign investors and a moderately negative global market environment, analyst said.

“Considering the external background, we expect the MOEX Russia Index to move in the middle of the 2,800–2,850 range… Internal growth factors have not surpassed possible risks yet,” Promsvyazbank analyst Roman Antonov said.

Antonov added that Asian markets are seen mainly lower, and the U.S. indices futures are trading slightly higher.

Olma senior analyst Anton Startsev said that technical analysis data point to the possibility of a deeper correction of the RTS index. Volatility may increase in light of uncertainty concerning the U.S. government’s moves to support the economy and global restrictions linked to the spread of the coronavirus pandemic.

Senior analyst at Promsvyazbank Bogdan Zvarich said that the global sentiment is moderately negative with the Brent oil futures falling around 0.8% to U.S. $42.8 per barrel and a declining investors’ risk appetite.

Investors in Russia will also follow publication of operating for July–September by diamond producer ALROSA and container terminal operator Global Ports among other corporate events.

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