Russian stocks may fall in line with oil prices, US stock futures

MOSCOW, Feb 14 (PRIME) -- The Russian stock market may ease at the start of Tuesday’s trading session on falling oil prices and futures for the U.S. stock indices, analysts said.

“We expect trading in Russia to start with an up to 0.1–0.6% contraction of the MOEX Russia Index in the range of 2,250–2,260. The levels of 2,240 and 2,220 will act as the closest support, while 2,270 and 2,280 will become the resistance,” Algo Capital senior risk manager Vitaly Manzhos said.

The futures for the U.S. stock indices lost up to 0.2% on Tuesday morning, the Brent oil price edged down by 0.6%, but the Chinese index Shanghai Composite gained 0.1%, and the Japanese index Nikkei225 rose by 0.7%. The external background is mixed, but the Monday evening weakness of the Russian market creates conditions for the MOEX Russia Index to open with a contraction, Manzhos said.

Alexei Antonov, head of Alor Broker’s investment consulting department, also said that the Brent oil price and the futures for the U.S. indices eased, which should not prompt any serious purchases.

“The market is more likely to move sideways today with a slight tendency for contraction,” he said, adding that Sberbank’s fall on Monday confirmed that the market was not preparing for a growth of the MOEX Russia Index.

But Bogdan Zvarich, financial platform Banki.ru’s senior analyst, said that the background for the Russian market may be seen as positive because the leading Asian bourses rose, the futures for the U.S. indices did not fall strongly, while the contraction of oil prices was only a correction from the Monday growth, he said.

“Purchases may continue to prevail on the Russian market at the start of trade today as it receives support from the external background and from the Monday growth in oil prices. As a result, the MOEX Russia Index will continue consolidation above 2,250, which may prompt further recovery of our market with the possible targets in the range of 2,400–2,500,” Zvarich said.

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