Russian stocks to fall at opening due to unfavorable background

MOSCOW, Jun 22 (PRIME) -- The Russian stock market can open lower on Wednesday thanks to a discouraging external background with crude prices losing around 3%, analysts said.

“We expect sales to prevail at the beginning of the trading session in light of a worsening situation on the energy markets. As a result of negative sentiments on the local market, the MOEX Russia Index is likely to move into the 2,320–2,340 range,” senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said.

“At the same time, the Russian market continues to consolidate within a convergent triangle, and it is premature to speak about any directed movement before it leaves the figure,” he added.

Zvarich said that the global background looks negative. Main Asian stock exchanges are losing up to 2.1%, and the core U.S. indices futures are falling around 1%. The nearest Brent oil futures is seen 3.1% down, near the U.S. $111.2 per barrel mark.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, also expects the MOEX Russia Index to edge down by 0.3–1.6% within the range of 2,320–2,350 at the opening, but does not rule out a correction bounce-back later in the day.

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