Russian stocks may fall on Ukrainian conflict, weak oil

MOSCOW, Jun 4 (PRIME) -- Russian stocks may open with a decrease on Thursday amid reports about escalation of the Ukrainian conflict and weak oil prices, analysts said.

“Technical analysis data keeps a possibility that a downward correction on the RTS index will deepen. A geopolitical factor is again having a negative impact on the market – reports about escalation of the Ukrainian conflict have appeared. Foreign background also contains elements of uncertainty, including oil price dynamics and Greece’s debt problem issue,” investment company Olma’s senior analyst Anton Startsev said.

“We expect the Russian market to open with a slight reduction on the most liquidity securities, assuming that the MICEX index will again test the support zone of 1,600 points for resistance,” Oleg Shagov, head of analytical department at investment company Solid, said.

The general background and influence of the main factors on the Russian market is moderately negative prior to the opening, Shagov said. Oil prices have again fallen to below U.S. $64 per barrel, U.S. stock indices are decreasing, and leading Asian stock indicators are mostly in the minus zone, the analyst said.

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