Russian stocks may fall at opening on negative sentiments

MOSCOW, Aug 24 (PRIME) -- The Russian stock market may decrease at opening on Thursday on negative investors’ sentiments and worsening geopolitical situation, analysts said.

“On the daily chart, a “triple top” reversal pattern is seen. In the best case, the stock market will show a “whipsaw” movement with the boundaries of 3,000–3,200 points, in the worst case, a full-fledged correction will begin with the potential for a decline of 10% or even more,” Alexei Antonov, head of Alor Broker’s investment consulting department, said.

Oil's attempts to bounce upwards from support are expected, but this may not provide proper support to ruble assets, the analyst added.

“We expect to see the MOEX Russia Index continue to decline today. It is not excluded that it can reach 3,060 points. On the background of correction in shares of the first and second echelons, probably, demand for low-liquid securities will be increased today,” Alexei Golovinov, chief analyst at PSB Bank, said.

Cifra Broker analyst Daniil Bolotskikh said that the Russian market is likely to face increased volatility due to heightened geopolitical tensions.

A positive external backdrop is developing on Thursday morning, he also said.

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