Russian stocks to edge down at opening following Western bourses

MOSCOW, Nov 19 (PRIME) – The Russian stocks are likely to ease at opening on Thursday as the local benchmarks will follow the Western bourses, analysts said.

“We expect contraction of stocks at the beginning of trade on the Russian stock market today following a fall of the Western bourses,” Natalya Pyryeva, analyst at investment company Finam, said.

The U.S. stock market lost enthusiasm after pricing in the vaccine news and getting close to historical highs. Several U.S. states toughened the anti-coronavirus restrictions, which also hurt the investor mood. Nevertheless, there are no serious drivers that could cause a serious downward correction of the Russian market even after a negative start of the day, Pyryeva said.

“We expect the MOEX Russia Index to open with a moderate fall of up to 0.2–0.5% in the range of 3,065–3,075. The levels of 3,060 and 3,050 will act as the closest support, while 3,080 and 3,090 will remain as resistance,” Algo Capital’s senior risk manager Vitaly Manzhos said.

“In the first few minutes of trade, the MOEX Russia Index will price in a slight worsening of the external background that happened yesterday evening. After that, the most probable scenario is consolidation close to 3,070 on expectation of new serious drivers.”

Later in the day, investors will track dynamics of futures for oil, and the release of U.S. weekly jobless claims data, he said.

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