Russian stocks may fall on external pessimism, weak crude, metals

MOSCOW, Oct 20 (PRIME) -- The Russian stock market may open with a fall on Wednesday due to poor external factors and moody crude oil and metals markets, analysts said.

“The external backdrop is not very encouraging today. After yesterday’s gains, U.S. futures are down more than 0.1%, oil and industrial metals are down. So it will not be easy for the MOEX Russia Index to rise today in the first half of the day,” Alexei Antonov, chief analyst at Alor Broker, said.

Vasily Karpunin of BCS Financial Group said that “the external factors are not favorable for active continuation of yesterday’s growth.” He added that “a slight pullback is possible amid correction of metals and oil prices.”

The U.S. indices remained at about the same levels after the close of the Moscow Exchange’s main session on Tuesday, Karpunin said. Asian markets are trading mixed in the morning and do not show unified dynamics.

The opening of the MOEX Russia Index will not be far from the previous day’s closing levels, Karpunin said.

The analytical team of Algo Capital headed by Vitaly Manzhos expects the MOEX Russia Index to open with a moderate decline of 0.1–0.4% in the range of 4,260–4,275. The external background before the beginning of trading in Russia can be characterized as slightly negative. This creates conditions for the opening with a moderate decline, the analysts said.

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