Russian stocks to fall on unfavorable external environment

MOSCOW, Oct 22 (PRIME) – The Russian stocks are likely to fall at Thursday opening following the foreign bourses and the oil market, analysts said.

“This morning, the stock markets’ mood has worsened further. All Asian bourses are uniformly in the red zone … and the futures for the U.S. stock indices also fell by about 0.5%. The futures for the Brent oil lose 0.5% more today in addition to a 3.3% contraction it experienced yesterday, and it is at U.S. $41.5 per barrel. Moreover, the ruble loses 0.36% to 76.9465per U.S. dollar,” Alexei Korenev, analyst at Finam, said.

“No matter where you look the background for the Russian market is negative prior to the opening of trade on the Moscow Exchange.”

Investment company Olma senior analyst Anton Startsev also said that the RTS Index is likely to contract at the beginning of the day under the weight of the external factors.

“The statements of the U.S. intelligence service about attempts to interfere with the upcoming elections coming from Iraq and Russia became the reason for a slight increase of general volatility of the markets, while an unexpected growth of gasoline reserves in the U.S. according to the International Energy Agency had an unfavorable impact on the oil market trade,” Startsev said.

Later in the day, investors will focus on secondary housing sales data that the U.S. is to release, and on quarterly financial results of Coca Cola, AT&T, and Intel. Another major event that is the final in-person debates between the U.S. presidential candidates, he said.

Korenev also said that the flow of corporate reports will be in the focus with steelmakers Severstal and Magnitogorsk Iron and Steel Works (MMK) to release their financial results in accordance with the International Financial Reporting Standards (IFRS). Gold producers Polymetal International and Polyus are to release their operating results today, as well as oil and gas pipe producer TMK and hydropower giant RusHydro, he said.

.End