Russian stocks may fall as investors not ready for taking risks

MOSCOW, Dec 25 (PRIME) -- Russian stocks are likely to open with a contraction on Tuesday as the general negative trend on the global bourses and the absence of Western investors due to the Christmas holidays don’t favor resumption of appetite for risk, analysts said.

“The RTS Index may open in the red zone today, as the character of trade on the global bourses does not allow us to expect recovery of demand for risk. At the same time, the RTS Index is unlikely to fall below 1,050 taking into account the lack of foreign players who left the market to celebrate the Christmas holidays,” investment company Olma’s analyst Anton Startsev said.

The background for the market is unfavorable as the U.S. stock indices lost more than 2% on Monday, and no trade will be held there on Tuesday due to Christmas. The bourses of Western Europe were closed on Monday for Christmas celebration, and the Asian floors contract today, Startsev said.

Sergei Drozdov, investment company Finam’s analyst, said that trade in national stocks will only active only at the beginning and at the ending hours of the session as there will be no American and Western players on the market. “Movements in shares may be extremely volatile as the market will be thin today,” Drozdov said.

“The Russian stock market may fall significantly at the start of trade on Tuesday following oil prices and the Asian markets,” Ivan Marchena, Forex Club’s analyst, said.

On Monday, the Brent oil price plunged 6.22% to U.S. $50.47 per barrel, according to the ICE exchange.

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