Russian stocks to fall at opening on expectations of S&P downgrade

MOSCOW, Oct 24 (PRIME) -- The Russian stock market is likely to ease at Friday’s opening on expectations of Standard & Poor's downgrade of the country’s rating and the weakening ruble, analysts said.

“We expect the MICEX index to consolidate within 1,360-1,385 points ahead of the announcement of the rating. In case of a downgrade the index may decrease, while the absence of any S&P’s negative actions will contribute to the market’s rise to 1,400 points,” Yevgeny Loktyukhov, senior analyst at Promsvyazbank, said.

The international rating agency is likely to follow Moody’s and downgrade Russia prompting capital outflow and a stock market fall, according to Anton Fomin, analyst at Instaforex.

The positive trends for the Russian stock market include stable oil prices and growing U.S. indices, Platon Maguta, senior manager at Fond Maguta managing company, said.

The major event for investors will be the publication of Magnit’s financial report, Andrei Dirgin, Alfa-Forex senior analyst, said.

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