Russian stocks may open lower on falling oil, negative background

MOSCOW, Oct 13 (PRIME) -- Russian stocks may decrease at the opening on Tuesday on the back of falling oil prices and a moderately negative foreign background, analysts said.

“Our estimates show the influence of main external factors that have a significant impact on the Russian financial market dynamics is moderately negative today at the start of the day. Brent oil futures have again decreased to U.S. $50 per barrel on the back of an OPEC report of a continued growth of oil output in September,” Oleg Shagov, head of research department at investment company Solid, said.

Leading U.S. stock index futures are under pressure suffering small losses, while Asian stock indicators are demonstrating mostly negative dynamics, the analyst said.

“We expect the Russian stock market to open lower on the MICEX and RTS indices, assuming that amid a worsened external background the MICEX index will continue yesterday’s correction and may again fall below the psychologically important level of 1,700,” Shagov said. The RTS index will demonstrate a weaker dynamics due to the dollar’s expected strengthening against the ruble, he said.

Vitaly Manzhos, senior analyst at Bank Obrazovanie, expects the stock market to open almost flat at around 1,710 points of the MICEX index, while the nearest support levels will are 1,700 and 1,690, while 1,730 and 1,740 will be resistance levels, he said.

President Vladimir Putin’s participation in the investment forum Russia Calling! and his meeting with the government will be important events of the day, which may influence investor mood, Shagov said.

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