Russian stocks seen declining at opening on oil futures' fall
MOSCOW, Oct 27 (PRIME) -- The Russian stock market will likely fall at opening on Wednesday because of a 0.8% decrease of oil futures, analysts said.
"We expect the MOEX Russia Index to open with a 0.1–0.4% decrease at about 4,220–4,230. The levels of 4,210 and 4,200 will be the closest support, and of 4,250 and 4,260 will be the resistance," Algo Capital senior risk manager Vitaly Manzhos said.
According to the analyst, the index would likely price in a significant fall of the oil futures and consolidate.
The Brent futures lost 0.8% on Wednesday morning, the U.S. stocks futures rose by 0.1%, the gold futures shed 0.4%. In Asia, the Shanghai Composite decreased by 0.9%, the Nikkei225 lost 0.1%. According to Manzhos, these factors create a moderately negative external background for the start of Russian trade.
Alor Broker senior analyst Alexei Antonov said that a strong Russian ruble pressured the stock market because of a forecasted decrease of revenue of exporters prevailing in the list of MOEX Russia Index participants.
Antonov said that some investors are about to depart to risk-free instruments after the central bank raised the key rate.
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