Russian stocks may fall on expectations of further key rate rise

MOSCOW, Sep 19 (PRIME) -- The Russian stock market may decrease at opening on Tuesday as investors fear of the further key rate increase or retaining it at a high level, analysts said.

“The main fears are the risks of further increase of the key rate by the central bank and keeping it at a high level for a long time. Therefore, one should not count on the trend growth of the stock market,” head of Alor Broker’s investment consulting department Alexei Antonov said.

According to the analyst, the dominance of private investors, as well as high oil prices, will restrain the MOEX Russia Index from strong drawdowns.

The oil sector can be in the category of strong securities, as today in the morning oil prices are trading around U.S. $95 per barrel, i.e. at the upper boundary of the resistance range, the analyst also said.

After the introduction of new anti-Russian sanctions and an increase in the key rate of the central bank, the activity of buyers has noticeably decreased, BitRiver’s financial analyst Vladislav Antonov said.

Given the weakness of the ruble, the MOEX Russia Index will strive to reach the 3,190 points by the end of the week, he said.

“It is also important to pay attention to the level of 3,100 points. If it does not hold, we may face a correction towards 3,000 points. Technical analysis is on the side of buyers, but from a fundamental point of view the situation is tilted in favor of sellers,” the analyst said.

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