Russian stocks to slide on worries over exporters’ revenue

MOSCOW, Sep 23 (PRIME) -- The Russian stock market will decrease at the opening of the Wednesday’s trading session because traders worry that the government can withdraw exporters’ additional revenue from weak ruble, while lackluster Chinese statistics will add to the negative trend, analysts said.

“The downward correction can deepen today in the start of the trade,” Anton Startsev, senior analyst at investment company Olma, said.

The oil and gas sector is now the hardest hit amid information that the tax burden on oil companies can increase and on worries that the government will make all exporters contribute their revenue from ruble devaluation to the state budget, Oleg Shagov, head of the analytical department at investment company Solid, said.

Weak Chinese business activity figures will make investors abstain risks, Startsev said.

Brent prices gained a little on Tuesday in the evening but on 9.01 a.m., Moscow time on Wednesday, Brent fell 0.49% to U.S. $48.84.

The Russian market will also follow the negative foreign market trends caused by the Volkswagen scandal and concerns over the global economic development, Promsvyazbank analyst Ilya Frolov said.

The MICEX is expected to open at about 1,660, Shagov said.

Later in the day, Russian traders will wait for releases of purchasing managers’ indices (PMIs) for euro zone countries and for the U.S. oil reserves data, Startsev said.

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