MOSCOW, Aug 20 (PRIME) -- Russian stocks are likely to open lower on Thursday as the price for oil, the backbone of the country’s economy, is falling again pushing the ruble down, analysts said.
“Technical analysis maintains the possibility of a deeper downward correction of the RTS index and the ruble’s weakening on the currency market,” Olma’s senior analyst Anton Startsev said.
“From the technical analysis point of view, consolidation of the Brent oil price was broken down, which implies a further decrease.”
The general background prior to the opening of the trading session is negative with the Brent oil price losing 0.597% as of 8.58 a.m. Moscow time, Asian floors showing mostly negative dynamics and U.S. stock index futures slightly rising. The MSCI Emerging Markets index has fallen to 4-year record lows.
“We expect the Russian stock market to open close to 1,670 points of the MICEX index and with a fall of the RTS index. The closest technical support level for the MICEX index…lies in a 1,650–1,660 range, where 50-day and 100-day weighted average lines of the stock indicator are located,” Oleg Shagov, senior analyst at investment company Solid, said.
Vitaly Manzhos, senior analyst at Bank Obrazovanie, also said he expected a 0.3% decrease of the MICEX index at the start of trading.
“In the first half of the day, the local market will remain under pressure from oil contracts that fell to their mid-term lows yesterday,” Manzhos said.
During the day investors will also focus on U.S. jobless claims and housing sales data.
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