MOSCOW, Nov 1 (PRIME) -- Russian stocks are likely to edge down on Thursday morning on the back of a mixed external background and falling oil prices, analysts said.
“We expect the MOEX Russia Index to open with an insignificant contraction within 0.3% close to 2,350. The levels of 2,340 and 2,330 will act as the closest support, while 2,360 and 2,370 will become the resistance. After a moderately negative start of the day, the index may switch to consolidation with 2,350 being the most probable point of attraction. This is likely to happen due to an uncertain condition of the foreign background in the morning,” Algo Capital’s senior risk manager Vitaly Manzhos said.
Future contracts for the U.S. stock indices grew by about 0.3% early in the morning, but the Brent oil price fell about 0.6%. Japan’s Nikkei225 slid 1.2%, but Hong Kong’s Hang Seng gained 1.8%.
Mikhail Poddubsky, a senior analyst at Promsvyazbank, said that global markets lost some Wednesday growth after the Moscow Exchange had ended trading, so the MOEX Russia Index is likely to fall at the start of the Thursday session.
But Anton Startsev, investment company Olma’s senior analyst, said that changes in the foreign news flow may result in a positive start of the day in Russia.
“The RTS index may continue its growth at the start of trade today as the external background has improved: several U.S. companies released strong financial results (including General Motors and eBay), reports came out about possible improvements in the Brexit talks, and the Chinese politburo stressed the necessity of active support measures for the country’s economy,” Anton Startsev said.
Nevertheless, the beginning of the day may not be that positive as the Brent oil prices are below U.S. $75 per barrel, while the Wednesday agreement of the Russian government with the local oil companies on restriction of growth of fuel prices is hardly a favorable factor for them, Startsev said.
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