Russian stocks may open lower as oil price falls

MOSCOW, Jan 19 (PRIME) -- The Russian stock market is likely to start Thursday’s trading with a contraction as foreign bourses and oil prices are mainly down, analysts said.

“We expect trading in Russia to start with a 0.2–0.9% decrease of the MOEX Russia Index in the range of 2,175–2,190. The levels of 2,170 and 2,150 will act as the closest support, while the levels of 2,200 and 2,210 will become the resistance,” Algo Capital senior risk manager Vitaly Manzhos said.

The futures for the U.S. indices fell by up to 0.2% in the morning, while the Brent oil price lost 1.2% and the futures for the gold gained 0.2%. The Chinese index Shanghai Composite grew by 0.3%, but the Japanese index Nikkei225 contracted by 0.6%. Worsening of the external background in the morning creates conditions for the MOEX Russia Index to fall at the start of trade, Manzhos said.

In the second half of the day, the national investors will focus on the weekly U.S. oil and oil product reserves, he said.

Promsvyazbank said in a research note that the MOEX Russia Index would continue to fluctuate in a 2,170–2,200 range attempting to climb above the upper threshold.

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