MOSCOW, Oct 12 (PRIME) -- The Russian Stock market is likely to start Thursday’s trading session with a serious contraction as the oil prices fell after Saudi Arabia promised to stabilize the market, while the ruble jumped on the news of a decree ordering obligatory foreign currency sales for some exporters, analysts said.
“The MOEX Russia Index grew by 0.54% (on Wednesday) to 3,194, and the RTS Index rose by 0.87% to 1,005. It looks like the MOEX Russia Index growth stopped at 3,194. Taking into account the fall of oil prices, we expect the index to correct downward to 3,115, while further movement will become clear at the end of the upcoming trading session,” BitRiver’s financial analyst Vladislav Antonov said.
The Brent oil price plunged to U.S. $85.68 per barrel from $88.96 per barrel on Wednesday. Saudi Arabia is interested in preventing a rapid price growth and destabilization of the market because it is the largest oil exporter, Antonov said.
“The situation changes seriously during the (Wednesday) evening trading session on the news that Vladimir Putin signed a decree on mandatory sales of some foreign currency revenue by large exporters. The ruble started to grow rapidly, while the stock market plunged. It is obvious that the shares of exporters lost the most,” Promsvyazbank senior analyst Alexei Golovinov said.
“Our estimates show that the MOEX Russia Index will fell below 3,100 for the first time since September 28 with the mining and metals companies becoming losers and oil and gas companies also coming under pressure,” Golovinov added.
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