Russian stocks may plunge on high geopolitical risks
MOSCOW, Jan 18 (PRIME) -- The Russian stock market may continue its descend on Tuesday on severe risks of further geopolitical escalation, analysts said.
All of the Russian market’s blue chips are trading deep in the red zone during the morning session amid news of Russia evacuating diplomatic corps’ families from Ukraine and the U.S. futures going down pressured by the dynamics of the national COVID-19 statistics and the Fed’s promise of further key rate raises, Alexei Antonov of Alor Broker said.
The Moscow Exchange (MOEX) Index may break through the lower support level of 3,500 points today, marking a deep correction trend, Antonov said.
According to Vasily Karpunin, chief analyst at BCS Investment Group, the overall external background today is positive, as the U.S. platforms were closed yesterday and the Asian stocks have been showing mixed dynamics, and the Brent oil blend tested the U.S. $87.5 mark today, a record high since 2014. However, this may not be enough to overpower investors’ strong fears of an imminent conflict in Ukraine, which has been spurring sale-offs in the Russian market for 7 trading sessions in a row.
The Russian market will mostly follow geopolitical signals and the crude oil dynamics today, Vladislav Silayev of Alfa Capital said. As for today’s major corporate news, PIK Group will publish its 2021 operating results, and coal giant Raspadskaya will close the dividends register later in the day, he said.
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