Russian stocks to edge down at opening, trade volumes to remain low

MOSCOW, May 12 (PRIME) -- The Russian stock market is likely to edge down at opening on Thursday and later consolidate within the opening level with low trade volumes as the external environment and sentiment on the global stock floors remain negative, analysts said.

“Taking into account the persisting geopolitical risks and deterioration of the external background, sales in the Russian stocks are likely to prevail. The MOEX Russia Index may go down below 2,370 points. Securing under the notch will signal higher probability that negative dynamics will continue,” senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said.

Vladimir Solovyov from Promsvyazbank said that the MOEX Russia Index may consolidate in the range of 2,350–2,400 during the day because of a lack of buyers, which can be seen from very low trade volumes of recent days and the negative external environment. Global trade dynamics are also likely to be negative.

Sentiment on the global markets are rather negative prior to the start of trade in Russia, with the Asian floors decreasing within 1.7% and the U.S. index futures edging down 0.2%, Zvarich said. The Brent oil futures fell 1.8% and is trading around U.S. $105.5 per barrel.

Investors will wait for the releases of preliminary GDP data for January–March in the U.K. and statistics on unemployment and producers’ prices in the U.S.

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