Russian stocks seen falling on oil price, foreign markets decrease

MOSCOW, Aug 19 (PRIME) -- The overbought Russian stock market will likely decrease at the start of the session on Thursday because of a fall of oil prices and foreign stock markets, analysts said.

"Since the RTS futures are overheated on the hourly diagram, we will see a neutral opening compared with yesterday's evening session closing and a negative opening compared with the day session,” Andrei Vernikov, head of the investment analysis and education department of investment company Univer Capital, said.

“The initiative is gradually concentrating in thepaws of bears but many things depend on whether they manage to break through an important support of U.S. $67.44 on the Brent diagram at the end of the session."

Minutes of the U.S. Federal Reserve System (Fed) meeting published late on Wednesday show that the Fed are inclined to curtail the support this year as economic growth forecasts have not changed while uncertainty over the pandemic remains high, he said.

Alexander Osin, head of Freedom Finance’s department for trade operations on the Russian stock market, said that the MOEX Russia Index tested a historic high on Wednesday and decreased at the end of the session because of consolidation of the oil prices and falling U.S. markets.

Osin put the MOEX Russia target range estimate at 3,885–3,965, saying that the market will decrease at opening.

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