Russian stocks may fall on uncertain background, sanctions risk

MOSCOW, Dec 10 (PRIME) -- The Russian stock market is likely to edge down slightly at the opening on Tuesday pressured by a risk of new U.S. sanctions and a lack of global drivers, analysts said.

“There is a major risk factor for the local stocks, tomorrow’s voting on a bill tightening anti-Russian sanctions by the foreign affairs committee of the U.S. Senate. In these conditions, we see the further rise of the MOEX Russia Index as difficult,” Promsvyazbank senior analyst Mikhail Poddubsky said.

Bloomberg reported earlier in December that U.S. lawmakers had included sanctions aimed at blocking the Nord Stream-2 natural gas pipeline from Russia to Germany in a must-pass national defense bill.

Poddubsky added that the index is likely to consolidate in the upper half of the 2,900–2950 range under the basic scenario.

Alor Broker analyst Alexei Antonov said that new drivers are necessary for the global market to advance. There is still uncertainty about the results of trade negotiations between the U.S. and China, which prevents global floors from growing.

The Russian market may open slightly lower, he added.

Investors will begin profit taking in stocks of metals giant Norilsk Nickel due to a fall in nickel prices. Oil company Lukoil may continue the downward trend, and top bank Sberbank may bounce back from a strong 248 ruble resistance, Antonov also said.

Investors will also follow publication of operating results for November by raw diamond mining giant ALROSA and meat producer Cherkizovo Group among other corporate events.

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