Russian stocks may drop amid worsening environment on oil market

MOSCOW, Oct 30 (PRIME) -- The Russian stock market is expected to decrease on Monday in light of a discouraging energy market environment, analysts said.

“Active sales of Russian stocks are expected at the beginning of the trading session because of a worsening situation on the crude market. As a result, the MOEX Russia Index can fall below 3,200,” senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said.

“The nearest technical support line of the local market is 3,150, where the upward trend lies, and the major support mark is 3,000. If the benchmark falls below it, a double top technical model with a target at 2,720 is formed,” he added.

The external background is moderately positive in the morning, Zvarich said. The main Asian bourses are rising by up to 0.3%, except for Japan that is falling by 1%, and the core U.S. indices futures are growing by 0.4%. The Brent oil price is losing 1.1% to U.S. $88.2 per barrel.

BitRiver financial analyst Vladislav Antonov said that in case the MOEX Russia Index declines under 3,190 on Monday, downward correction can expand to 3,12t1.

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