Russian stocks to slide on weak oil, ruble

MOSCOW, Aug 18 (PRIME) -- Russian stocks are likely to slide on Tuesday morning on the back of low oil prices that will push the ruble down and a negative external background, analysts said.

“The external background is still moderately negative which restrains an inflow of capital to the Russian market and leaves a chance for a worse downward correction. At the same time, technical analysis shows no signals for strong movements of the RTS index,” Olma’s senior analyst Anton Startsev said.

U.S. stock index futures are staying flat prior to the opening of the trading session, Asian floors are showing mostly negative dynamics and the Brent oil price has contracted by 0.226% as of 9.01 a.m. Moscow time, according to the ICE exchange.

“We expect the Russian stock market to open close to 1,705 points of the MICEX index and with a fall of the RTS index,” Oleg Shagov, senior analyst at investment company Solid, said.

Vitaly Manzhos, senior analyst at Bank Obrazovanie, also said that the MICEX index may open with an about 0.3% decrease, and 1,695 and 1,680 will remain the support levels, while 1,715 and 1,725 will become the resistance level for the index.

Later during the day, the market will focus on the oil price dynamics. Statistics on new U.S. housing construction in July may also have an impact on the local trading, Manzhos added.

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