Russian stocks to fall on worsening environ, ahead of long weekend

MOSCOW, Jun 11 (PRIME) -- The Russian stock market is likely to see a day of downward correction on Thursday as the global background is cooling down, and investors will take profit ahead of a long weekend, analysts said.

“In light of a noticeable worsening of the external background and the upcoming long weekend, we expect strengthening of a wave of profit-taking on the Russian stock market, whose start was seen during yesterday’s trade session… The MOEX Russia Index may begin the day with a considerable fall to 2,700–2,750,” Yevgeny Loktyukhov, head of Promsvyazbank’s research department, said.

On Friday, the Russian stock market will be closed to celebrate Russia Day.

Oil major Rosneft will begin trading ex-dividend that is an additional negative technical factor, Loktyukhov added.

He also said that the negative trend is mounting on the global markets following pessimistic decisions of Wednesday’s meeting of the U.S. Federal Reserve board, which may affect the recovery of the global economic activity. Rising uncertainty will cool down the markets that look overheated following the recent rallies.

Asian markets are trading in the negative territory, U.S. indices futures are losing around 1%, and the Brent oil price may return to below U.S. $40 per barrel.

Olma senior analyst Anton Startsev said that the RTS index is also likely to correct downwards following the global dynamics.

Investors in Russia may also follow publication of oil pipeline monopoly Transneft’s IFRS financial results for January–March, and a decision of Novorossiysk Commercial Sea Port (NCSP)’s board of directors on dividends for 2019 among other corporate events.

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