Russian stocks may fall on cheap oil, negative foreign background

MOSCOW, Sep 10 (PRIME) -- Russian stocks may fall at the opening on Thursday on the back of decreasing oil prices and moderately negative foreign background, analysts said.

“We expect the market to open with a significant decrease of around 0.7% at the MICEX index, around the notch of 1,710 points,” Vitaly Manzhos, senior analyst at Bank Obrazovanie, said, adding that 1,700 and 1,690 will be the closest support levels, while a range of 1,730–1,735 points will remain the resistance zone, he said.

The influence of key external factors that have a significant impact on the Russian financial market is moderately negative today at the start of the day, Oleg Shagov, head of an analytical department at investment company Solid, said. Brent oil price fell to U.S. $47 per barrel on the back of projected growth of U.S. oil reserves. U.S. stock index futures are slightly changing, Asian stock indicators are mostly decreasing, the analyst said.

“We expect the Russian stock market to open at the level of 1,715 points at the MICEX index and with a decrease of the RTS index,” Shagov said. On Wednesday, the MICEX closed at 1,722.43.

A downward correction at the RTS index is possible today at the start of trading, Anton Startsev, senior analyst at investment company Olma, said. Foreign background has worsened prior to the trading opening, as optimism over expected measures to stimulate the Chinese economy weakened after a release of the country’s inflation data, while fears over an interest rate hike by the Federal Reserve have resumed in the U.S., he said.

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