Russian stocks to slide on oil price, foreign market fall
MOSCOW, Jul 22 (PRIME) -- The Russian stock market will decrease on Wednesday pummeled by falling oil prices and foreign stock markets, analysts said.
“In conditions of a moderately negative external background the MICEX may resume the decline today,” Oleg Shagov, senior analyst at investment company Solid, said.
The MICEX will fall by 0.5-0.7% at the opening to about 1,625, and 1,620–1,610 will be its support zone, while the resistance level will be 1,640–1,650, Vitaly Manzhos, senior analyst at Bank Obrazovanie, said.
The Brent slid 0.84% to U.S. $56.56 as of 9.00 a.m., Moscow time, which is the main reason why the Russian market mood is so downbeat, analysts said.
The U.S. stock futures and the key Asian indices also demonstrate a negative dynamics, these factors will make the Russian market erase the Tuesday’s gains on Wednesday, Shagov said.
Both U.S. and European trading floors closed in the red zone on Tuesday on weak corporate statistics, Promsvyazbank said.
There will be slew of corporate reports, secondary housing sales statistics and oil reserve figures, which the market will watch, Olma senior analyst Anton Startsev said.
The European Central Bank will discuss the aid program for Greek banks, which will also be in focus of Russian investors’ attention, Startsev said.
The ruble weakening could help the MICEX stay afloat but tax payments will not let the ruble sink this week, Promsvyazbank said.
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