Russian stocks to fall at opening as oil, foreign markets ease

MOSCOW, Dec 2 (PRIME) -- Russian stocks are likely to fall at Friday’s opening in reaction to decreasing foreign markets and lower oil prices, pushing the MICEX index down from its all-time highs, analysts said.

“The external background prior to the start of trading in Russia may be characterized as moderately negative. We expect the market to open with a moderate decrease of about 0.3–0.4% of the MICEX index close to a 2,115 point mark. The levels of 2,110 and 2,100 will become support levels, while 2,130 and 2,140 will act as resistance levels,” Vitaly Manzhos, a senior analyst at Bank Obazovanie, said.

Oleg Shagov, head of investment company Solid research department, also said that “the ultimate influence of key external factors that impact significantly the mood of the Russian stock market is negative at the beginning of the day” as the oil prices are falling after a two-day rally, U.S. stock index futures are contracting, and Asian floors are in the red zone.

The Brent oil price fell 1.17% to U.S. $53.31 per barrel as of 9.19 a.m. Moscow time, according to the ICE exchange.

“The premarket trading of the European session also signals a decrease of European stock floors prior to a constitutional referendum in Italy, which may create new problems for the united Europe,” Shagov said.

Anton Startsev, a leading analyst at investment company Olma, said that the previous growth of the RTS index is very likely to stop at the beginning of Friday.

“The activity of buyers on all markets, including commodities, has fallen until a release of important data on the U.S. labor market, which will show non-farm payrolls. Previous ADP’s data showed an increase of employment in the U.S. overshooting forecasts, which may become a factor of influence on the U.S. Federal Reserve System’s monetary policy,” Startsev said.

Shagov also said that among local events that may influence the market is a speech that the central bank’s Chairwoman Elvira Nabiullina is to give at the State Duma, the parliament’s lower house.

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