Russian stocks to fall amid mounting coronavirus threats

MOSCOW, Jun 25 (PRIME) -- The Russian stock market may open gap down and decrease later in the day on Thursday amid a rising threat of the further spread of the coronavirus disease, which causes negativity on the global stock and energy markets, analysts said.

“(Investors’) sentiments on Thursday morning are negative. Most Asian markets are falling by up to 2%, and the U.S. indices futures are losing up to 0.5% following a 2.5% slump on Wednesday. The energy market is also demonstrating negative dynamics with the nearest Brent oil futures decreasing to U.S. $40 per barrel,” senior analyst at Promsvyazbank Bogdan Zvarich said.

“In light of global dynamics, the Russian stock market is likely to edge down today. The MOEX Russia Index will open gap down within a 2,700–2,750 range,” he added.

The markers tried to ignore the coronavirus dynamics, but the number of newly infected people reached another peak in the U.S. so several states are forced to strengthen the lockdown measures, Zvarich also said.

Olma senior analyst Anton Startsev said that the RTS index may correct downwards as investors’ appetite for risk is decreasing.

Local investors will also track news from meetings of the boards of directors of gas giant Gazprom, mobile operator MTS, and Quadra, power generating company operating in Russia’s central regions, among other corporate events.

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