Russian stocks may fall dragged by worsened foreign background

MOSCOW, Mar 20 (PRIME) -- The Russian stock market can open lower and test the support line of 2,300 amid a discouraging external background on Monday, but still has a potential of growth to 2,400–2,500, analysts said.

“We expect downward correction at the beginning of the trading session in light of the worsening external background and cheaper oil. At the same time, the MOEX Russia Index managed to consolidate above the 2,300 mark last week, so it can recover to the range of 2,400–2,500 soon,” senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said.

Zvarich sees the foreign background as negative with the main Asian bourses losing around 1.2%, the core U.S. indices futures trading flat, and the nearest Brent oil futures falling by 1.1% to U.S. $72.2 per barrel.

Otkritie Research analyst Andrei Kochetkov said that global investors have been frightened by a merger between UBS AG and Credit Suisse that may cause additional problems. The MOEX Russia Index can test the 2,300 support line in this environment, he added.

PSB Bank senior analyst Yegor Zhilnikov said that the ruble is trying to strengthen itself against the U.S. dollar and can reach the range of 74–76 rubles per U.S. dollar later this week.

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