Russian stocks may open down on negative environment
MOSCOW, Nov 21 (PRIME) -- The Russian stocks may edge down at opening on Thursday as the U.S.–China uncertainty still weighs on the market, although the sale of Gazprom’s treasury shares may provide some support, analysts said.
“Demand at the stock market in general may remain under pressure at the start of trade today due to uncertainty around the prospects of the U.S.–China trade deal. At the same time, the shares of Gazprom may again come into the focus of traders as the company announced collection of bids for a treasury stake of about 850 million shares,” investment company Olma’s senior analyst Anton Startsev said.
Vladimir Ananyev, senior analyst of investment and consulting company Federation Consulting, said that strange statements in the U.S.–China trade dispute were becoming more and more frequent.
“When the sides failed to choose a place to sign the deal, many people thought that there were no problems in negotiations. But now, U.S. President Donald Trump returned to the old threats that new tariffs will be imposed without the deal. Nevertheless, the Chinese side is more optimistic now, and they think that an interim stage of the deal would be signed,” Ananyev said.
Investment company Veles Capital’s analyst Yelena Kozhukhova said at the end of Wednesday’s session, the MOEX Russia Index and the RTS Index stayed in the short-term ranges of 2,900–2,955 and 1,430–1,455, respectively. The market shows consistency and does not wish to part with the upward trend. Still, there are risks for the downward correction to happen. The guidance for the MOEX Russia Index (for Thursday) is 2,900–2,960.
The global bourses are moderately pessimistic now as there are no obvious signs that positions of the U.S. and China are getting closer, but dynamics of the Russian market are largely influenced by corporate stories that allow the indices to avoid a switch into a downward trend, Kozhukhova said.
End