Russian stocks may fall on traders’ fears, dim trading activity

MOSCOW, Dec 30 (PRIME) -- The Russian stock market can open with a decrease on Wednesday due to traditional precaution sales before the weekend and falling trading volumes, with a slight chance to consolidate later in the day, analysts said.

In addition to the Russian stocks’ recent tendency to fall before weekend, flight from risks among long traders amid concern over Russia–Ukraine tensions will add to sales at the main trading session today, Alexei Antonov of Alor Broker said.

For the past ten weeks, the Moscow Exchange Index has invariably fallen during the main session before the weekend, and this time as well, market participants may try to close speculative long positions, reducing the risks, Vasily Karpunin of BCS Investment Group said.

According to Bogdan Zvarich of Banki.ru, investors’ low activity limits the market’s growth, and most of the traders still express concern over the geopolitical risks and the impact of the Omicron strain on the economy, which cannot but add negativity.

However, growing oil futures may at least support the energy sector of the Russian market today, and the external factors are more on the side of buyers in the morning, Karpunin said.

Georgy Vashchenko of Freedom Finance expects mixed dynamics from today’s trading. There are no important statistics in focus, but sales are possible on the background of increasing risk rates, in case external platforms show negative dynamics, he said.

As Andrei Kochetkov of Otkritie Research said, the Russian market may ease slightly on the last trading day, although the market is supported by oil. There is still a chance to end the last trading day of the year in the green zone on positivity from the upcoming Putin–Biden meeting later in the day.

End