Russian stocks seen falling at opening as oil prices fail to recover

MOSCOW, Feb 26 (PRIME) -- The Russian stock market will likely edge down at opening on Wednesday because of an oil price dive on Tuesday followed by only a modest attempt at recovery, analysts said.

“The technical picture of the Russian stock market is menacing: the MOEX Russia Index easily broke the lower bracket of a narrow range at 3,050 and closed near the round number of 3,000,” Alor Broker’s analyst Alexei Antonov said.

“This notch will not hold at the opening today either. If we do not manage to return to the level above 3,050 today or tomorrow, another wave of decrease might follow.”

He added that the markets are mainly guided by the coronavirus news.

Sergei Drozdov, analyst at investment company Finam, said that oil quotations dove 2.01% on Tuesday, closing at U.S. $55.12 on the back of fears that the coronavirus could threaten global oil demand.

On Wednesday, the Brent oil blend rose by 0.42% to $55.18.

Drozdov said that if sales on the Western trading floors continue, the MOEX Russia index can fall to 2,950, and the RTS test 1,425.

Georgy Vashchenko, head of investment company Freedom Finance’s department for trade operations on the Russian stock market, said that on Wednesday, Norilsk Nickel is to report financials for 2019. The market expects revenue to exceed $13 billion, and net profit $5.1 billion. Debt is not to affect dividends.

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