Russian stocks may go into downward correction before long weekend

MOSCOW, Apr 28 (PRIME) -- The Russian stocks may face some pressure ahead of the long weekend and investors are likely to take profit after active purchases of the last two days, analysts said.

“The Russian stock market rose more than 10% over the last two days despite the absence of significant reasons for confident growth. It creates prerequisites for investors to switch to profit taking on long positions in our stocks ahead of the long weekend,” senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said.

This factor may facilitate a downward correction of the Russian stocks, with the MOEX Russia Index going down to the range of 2,350–2,400, he added.

Prior to the start of trade in Russia, the global market can be seen as moderately positive, Zvarich also said. Asia’s leading bourses are rising within 1.4%, except China’s market, which is falling by 0.5% amid worries over economic dynamics because of the new coronavirus restrictions. Futures on the U.S. stock indices are rising 0.8%.

“Private investors are playing the main part in the market’s dynamics at the moment, and they are actively joining emerging upward trends in fear that there will be no stocks for everyone. And yet, one better think about taking profit of the last two days, at least to some extent,” Alor Broker analyst Alexei Antonov said.

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