Russian stocks to fall as oil price, Asian markets decrease

MOSCOW, Aug 13 (PRIME) -- The Russian stock market is likely to open with a decrease on Friday as falling oil prices and a decrease of the Asian floors does not provide any positive momentum, analysts said.

“The external background is moderately negative. Futures for the U.S. indices are floating around the yesterday’s closure level, the oil price is losing about 1%, and metals prices are mixed,” Alor Broker’s senior analyst Alexei Antonov said.

On Wednesday, the MOEX Russia Index grew 0.3%, with oil and gas companies and metals giant Norilsk Nickel making the major contribution to the growth. Sberbank and VTB Bank fell, which may shows strength of the downward correction mood. This also favors a decrease in the index on Friday, but the drop will not be significant as the market is aimed at growth and the inflow of fresh money to the market is obvious, Antonov said.

Andrei Kochetkov, leading analyst for global research at Otkritie Broker, also said that the MOEX Russia Index might start the Friday trade with an up to 0.5% fall as the background, including the falling Asian markets and contracts for oil, provide negative momentum.

“In general, we see no wish of players on the risky assets market to sell them, but this increase does not look consistent during the period of summer vacations and general uncertainty over the virus and further stimulation measures of central banks. The Russian indices stopped their growth near the technically important levels, but they continue receiving support from separate corporate stories and keeping the unrealized growth potential,” Veles Capital’s analyst Yelena Kozhukhova said.

Kochetkov also said that investors will focus on the report of Baker Hughes on active drilling rigs in the U.S. and the release of the consumer sentiment index by the University of Michigan. The Russian companies that are to report today are Rosneft, ALROSA, M.Video-Eldorado, Mosenergo, and RUSAL, he said.

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