Russian stocks seen falling in early trade on profit taking

MOSCOW, Jan 17 (PRIME) -- The Russian stock market is likely to start Tuesday’s trading with a slight contraction as the external background is mixed providing no strong drivers for purchases, while some investors may try to take their profits in the morning, analysts said.

“On Monday, the MOEX Russia Index grew by 1.1% to 2,224, but sales may emerge at the start of trade today. Some investors would want to take their profits, which could lead to a correctional contraction of the Russian market,” said Bogdan Zvarich, senior analyst at financial platform Banki.ru.

He said that the situation on the international financial markets is mixed as the leading Asian bourses demonstrate no unified dynamics although China had published good macro statistics, while the futures for the U.S. indices lost 0.4%, and the Brent oil price gained 0.2%.

Algo Capital senior risk manager Vitaly Manzhos said that the mixed background created conditions for a moderate change of the MOEX Russia Index at the start of trade.

“We expect the MOEX Russia Index to start trading in Russia with a moderate change of no more than 0.7% in the range of 2,210–2,240. The levels of 2,200 and 2,190 will act as the closest support, while 2,250 and 2,260 will become the resistance,” Manzhos said.

In the second half of the day, no important foreign economic statistics are to be released, and only foreign political or local corporate news could have an impact on the national market, he said.

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