Russian stocks may open lower on negative foreign background
MOSCOW, Oct 7 (PRIME) -- Russian stocks are likely to edge down at opening on Friday as foreign floors are falling and because investors are wary ahead of disclosure of the U.S. labor market statistics, analysts said.
“We expect the market to open with a moderate decrease of about 0.3% of the MICEX index in a 975–1,980 range. The levels of 1,970 and 1,960 will become support, while the marks of 1,990 and 2,000 will act as resistance,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.
The external background is moderately negative, but it is not bad enough for investors to sell Russian stocks on a large scale, Manzhos said. The Brent oil price has edged up 0.057% to U.S. $52.54 per barrel as of 9.06 a.m. Moscow time, according to the ICE exchange, but futures for U.S. stock indices are falling and main Asian floors are mostly in the red zone.
Timur Nigmatullin, an analyst at investment company Finam, said that the Russian market may open with a slight contraction of the MICEX index as investors cut their positions in risky assets prior to the release the U.S. labor market figures, as it may influence the Federal Reserve System’s decision on its key rate.
But Oleg Shagov, head of investment company Solid research department, said that stability of oil prices will prompt a neutral opening of the Russian market close to Thursday’s MICEX index closing of 1,983.90. Later in the day, investors will also track January–September financial results of Russia’s biggest bank Sberbank under International Financial Reporting Standards, he said.
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