Russian stocks to fall under sales pressure after Brexit

MOSCOW, Jun 27 (PRIME) -- The Russian stock market will open lower on Monday, as global investors are still reeling after the Brexit, analysts said.

“We expect the Russian stock market to open with a decline to 1,875 of the MICEX and we assume that in the context of increased macro risks the decline potential of this stock market indicator has not vanished, and it is still under the sales pressure,” Oleg Shagov, head of investment company Solid’s research department, said.

The majority of U.K. voters, albeit with a margin of only a few per cent, chose to leave the E.U. at a referendum on June 23. Billionaire currency trader George Soros warned in a widely-quoted statement in the Guardian that the decision will considerably worsen the living standards of the British people.

Rating agency Moody’s changed its outlook for the U.K. to negative and Standard & Poor’s warned that the country could lose its highest AAA credit rating.

The global markets have entered a high-turbulence period and investor appetite for risky assets is subdued, Olma senior analyst Anton Startsev said.

The U.S. stock market futures are falling on Monday in the morning, the Asian markets are showing mixed dynamics and the European premarket signals a slide at the opening, Shagov said, all these factors will drag down Russian securities, he said.

The RTS closed above a 900 notch on June 24 which minimizes the risk of a profound decline on Monday but does not rule it out altogether, Startsev said.

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