Russian stocks may decrease on falling oil prices in early trade

MOSCOW, Nov 15 (PRIME) -- The Russian stock market may fall at the start of trade on Tuesday pricing in the Monday and Tuesday’s contraction of the oil prices, analysts said.

Bogdan Zvarich, senior analyst at financial platform Banki.ru, said that the foreign stock bourses’ mood was positive in the morning, as the leading Asian bourses gained up to 1.5%, and the futures for the U.S. indices rose by up to 0.5%. At the same time, the Brent oil price lost 0.3% to U.S. $92.9 per barrel.

“We expect the sales to pick up on the Russian market today, and the reason for that will come from a significant contraction of the energy market, which happened yesterday after the closure of our market. This factor may exert pressure on the shares of oil and gas sector, which could lead to a downward correction of our market,” Zvarich said.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, said that the impact of the rising foreign bourses and falling oil prices is mixed, which creates conditions for the MOEX Russia Index to start trading with a moderate change.

“We expect the MOEX Russia Index to change by no more than 1% at the start of the Tuesday trading in the range of 2,220–2,265. The levels of 2,210 and 2,200 will act as the closest support, while 2,270 and 2,290 will become the resistance,” Manzhos said.

In the second half of the day, the market will watch for preliminary Europe’s gross domestic product for July–September, he said.

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