Russian stocks may drop at opening on N Korea missile test

MOSCOW, Nov 29 (PRIME) -- The Russian stock market will likely open with a small negative gap on Wednesday because of an oil price fall and a missile test in North Korea, analysts said.

“Optimism about the U.S. tax reform discussion entering the voting stage in the Senate (will be held tomorrow) was a growth factor in Western stock exchange indices but it was not shared by traders on developing markets worried about growth of geopolitical risks after another missile test in North Korea,” Olma senior analyst Anton Startsev said.

Oleg Shagov, head of the investment company Solid’s research department, said that the ultimate influence of key external factors that have a significant influence on the Russian financial market is moderately negative because of a Brent decline to U.S. $63.2 per barrel, falling U.S. stocks futures, mixed Asian markets and the European session premarket showing no united trend later on Wednesday.

The MOEX Russia Index will likely open at 2,145 after closing at 2,144 and can experience sales pressure, Shagov said. According to Startsev, the RTS Index can consolidate at 1,160–1,170.

Startsev said that later in the day, Russian investors will pay attention to release of Lukoil’s financials under International Financial Reporting Standards (IFRS) for July–September.

Gazprom and RusHydro will also publish financial reports, important for market participants, according to Shagov.

End