Russian stocks to fall at opening undermined by foreign bourses

MOSCOW, Feb 9 (PRIME) -- Russian stocks are likely to fall on Friday morning following a slump on the U.S. bourses and a protracted fall of prices for oil, the country’s main export, analysts said.

“Taking into account an extremely weak closure of the U.S. stock market and a continuous contraction of prices for oil futures yesterday evening, the external background prior to the start of trade in Russia may be characterized as negative. It creates conditions for continuation of yesterday’s fall of the MOEX Russia Index and RTS index in the first half of the day,” Vitaly Manzhos, a senior risk manager at investment company Nord Capital, said.

The Dow Jones Industrial Average index slumped 4.15% to 23,860.46, while the S&P500 index lost 3.75% to 2,851.00. The Brent oil price slid 1.724% to U.S. $64.40 per barrel as of 9.00 a.m. Moscow time, according to the ICE exchange.

Manzhos expects the MOEX Russia Index to fall up to 1% to 2,205 with 2,200 and 2,190 remaining the closest noticeable support levels, and 2,230 and 2,240 acting as resistance.

Oleg Shagov, head of investment company Solid’s research department, expects the Russian stock market to fall to 2,215 of the MICEX index at opening and test a support level around the psychologically important threshold of 2,200 due to the unfavorable background.

Anton Startsev, a leading analyst at investment company Olma, also said that the RTS index may fall further at the beginning of the day following world indices and oil prices.

“Sales are becoming more and more global at the stock markets, and the Chinese stock indices lose 3–5% today, for instance. Still, we don’t rule out that the contraction may stop later in the day, as speculators may try to close their short positions if the U.S. Congress approves the budget law and secures long-term financing of the government,” Startsev said.

Shagov also said that the market will follow a meeting of the Russian central bank’s board, which will discuss monetary policy.

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