Russian stocks to ease at opening as oil price contracts

MOSCOW, Jun 8 (PRIME) -- The Russian stock market is likely to ease at opening on Tuesday pricing in the morning contraction of oil quotes, analysts said.

“Taking into account the morning contraction of oil futures, we see the external background prior to the start of Russian trade as moderately negative. It preconditions the MOEX Russia Index to start the day with a more or less noticeable fall,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

The Brent oil price lost 0.643% to U.S. $71.03 per barrel as of 9.10 a.m. Moscow time, according to the ICE exchange.

“We expect the MOEX Russia Index to open with a 0.1–0.5% fall in the range of 3,805–3,820. The levels of 3,800 and 3,780 will act as the closest support, while 3,820 and 3,840 will become the resistance. After a moderately negative start of the day, the MOEX Russia Index may stabilize around 3,800, as the morning worsening of the external background is not serious enough to stimulate aggressive sales in the Russian shares,” Manzhos said.

Alor Broker senior analyst Alexei Antonov also said that the background for the Russian market was not very good in the morning.

“The futures for the U.S. indices are around yesterday’s closing, the commercial and precious metals are in the red zone, and the oil price lost around 0.7% falling to $71. But the oil price fell deeper earlier in the morning, this is why an oil price growth is possible in the second half of the day to propel the Russian stock market higher,” Antonov said.

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