Russian stocks to fall at Friday opening on negative environment

MOSCOW, Oct 21 (PRIME) -- Russian stocks are likely to open lower on Friday as the unfavorable external background will weigh on the market and restrict purchases, analysts said.

“Today a deepening downward correction of the RTS index is possible at the beginning of the day. World traders were disappointed with a Thursday statement by the European Central Bank president,” investment company Olma’s senior analyst Anton Startsev said, adding that the external background will also exert pressure on the ruble.

Timur Nigmatullin, an analyst at investment company Finam, said that the ECB did not change its key rate and the asset buyback program, which prompted the U.S. dollar to grow to six-month highs, hurting the Russian market.

“As I see it, the MICEX will be under pressure from the unfavorable external background in the first half of the day, it may fall by about 0.5%,” Nigmatullin said.

Oleg Shagov, head of investment company Solid research department, said that the influence of key factors that have an impact on the Russian stock market is negative at the beginning of the day. The Brent oil prices, U.S. stock index futures and main Asian floors are all falling, he said.

“We expect the Russian market to open in a 1,955 range of the MICEX index and suppose that the pressure of sales on the Russian stock market will increase if the external background worsens during the day,” Shagov said.

Startsev said that the E.U. leaders are continuing their negotiations in Brussels today, and it may provide some drivers for the market. Shagov also said releases of financial results of retailer Magnit may also affect the local market during the day.

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