Russian stocks to open neutrally on global jitters, oil price fall

MOSCOW, Nov 21 (PRIME) -- The Russian stock market may move insignificantly at the opening on Wednesday and consolidate later in the day pressured by a tense global environment and oil prices losing around 5%, analysts said.

“We expect the MOEX Russia index to move moderately by around 0.3% at the opening within a 2,335–2,350 range… After the neutral start, the index may turn to volatile consolidation as oil futures have only slightly won back their steep yesterday’s fall,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

Alpari senior analyst Anna Bodrova said that crude prices slid as were pressured by a plenty of external risks coupled with some market participants’ intentions to raise production. The Brent oil price is currently seen at around U.S. $53.2 per barrel.

Promsvyazbank analyst Mikhail Poddubsky said that the global environment remains tense with a trade dispute between the U.S. and China in primary investors’ focus. U.S. Trade Representative Robert Lighthizer said on Tuesday that “China has not fundamentally altered its unfair, unreasonable, and market-distorting practices.”

The market will also be driven by releases of International Financial Reporting Standards (IFRS) financial reports for July–September and January–September by fertilizer producer PhosAgro and power company Lenenergo.

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