Russian stocks may fall on Tuesday on lack of positive drivers

MOSCOW, May 29 (PRIME) -- Russian stocks are likely to open with a decrease on Tuesday as local bulls lack any significant positive drivers for the trade, analysts said.

“Data of a technical analysis signifies a possibility of further downward correction of the RTS index as it closed lower than 1,170 on two consecutive trading days. Despite contraction of the yield on U.S. treasuries, the U.S. dollar rate has begun to strengthen on the global foreign exchange market…which may make a negative impact on demand for shares at emerging markets,” Anton Startsev, a senior analyst at investment company Olma, said.

Markets in the U.S. were closed on Monday due to Memorial Day, futures on U.S. stock indices were flat on Tuesday morning. European bourses fell a little on Monday, and Asian floors were correcting downwards early on Tuesday.

Vitaly Manzhos, a senior risk manager at investment company Nord Capital, said that the company expected a neutral start of the day for the MOEX Russia Index with an insignificant change in the range between 2,310 and 2,315. However, the Russian market was unusually stable over the past two trading sessions despite a significant slump of oil prices, which causes concerns, he said.

“It is possible that our stocks avoided contraction due to a decrease of trade activity of foreigners yesterday due to holidays in the U.K. and in the U.S. It is very likely that the local market would reflect a fall of futures for oil in several coming days,” Manzhos said.

Manzhos also said that the geopolitical background for Russia remains unfavorable. “At the end of the last week, Russia once again denied accusations of involvement in downing of a Malaysia Airlines plane in Eastern Ukraine in the summer of 2014. In general, there are no signs of a significant improvement of relations with the collective West,” he said.

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