Russian stocks to decline as ruble grows too strong

MOSCOW, May 14 (PRIME) -- The Russian stock market will sag on Thursday morning because the ruble, which has grown too strong lately, undermines interest in Russian assets, analysts said.

“The external background has not changed much today, Asian moods are mixed, this is why we cannot count on a positive trend. The MICEX will demonstrate a close to zero dynamics, while the foreign currency-denominated RTS may lose more than 0.5%,” ITInvest’s analyst Vasily Oleinik said.

The MICEX is unable to break through a 1,700-1,730 resistance level because of the ruble strengthening, Oleinik said.

The U.S. stock market futures were little changed on Thursday in the morning, and the Brent prices were close to U.S. $66 per barrel, which creates a close to neutral background for the trading session’s start, Oleg Shagov, senior analyst at investment company Solid, said.

Later on Thursday, market trends will be defined by corporate news because Gazprom’s board of directors is slated to suggest dividends, Moscow Exchange, Gazprom, Rostelecom and M. Video will publish their financial reports, Shagov said.

Stock market participants will pay close attention to the foreign exchange market to see if the ruble consolidates beyond a 50 per U.S. dollar notch, Olma’s senior analyst Anton Startsev said.

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