Russian stocks may slightly fall on negative foreign background

MOSCOW, Oct 27 (PRIME) -- Russian stocks may slightly decrease on Thursday under the pressure of negative foreign background and volatile oil prices, analysts said.

“As there is influence of negative foreign background in the morning hours, I expect small reduction of less than 0.5% at the MICEX index in the first half of the day,” Finam analyst Timur Nigmatullin said.

Japan’s Nikkei is losing 0.37%, China’s CSI300 is falling by 0.43%, and futures for the U.S.’ S&P 500 index are losing 0.21% ahead of the Russian opening, he said.

Oleg Shagov, head of investment company Solid’s research department, expects the MICEX to open at the level of 1,970–1,975 “assuming that the pressure of sales on the Russian stock market may increase if foreign background worsens.” On Wednesday, the MICEX fell 0.12% to 1,974.81.

Brent oil futures are slightly growing ahead of the Russian trade opening reacting to unexpected reduction of the U.S. oil reserves, Shagov said. However, the oil market remains volatile ahead of the OPEC meeting scheduled for late November, Nigmatullin said.

Olma senior analyst Anton Startsev said in a research note that “from positions of the technical analysis, a possibility of deepening downward correction of the RTS index remains.”

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