Stocks to fall on lower foreign markets, possible new sanctions

MOSCOW, Feb 10 (PRIME) -- The Russian stocks are likely to ease at the start the main trading session on Thursday as the foreign bourses fall, and the U.S. discusses new sanctions, analysts said.

“So far, we have seen no positive news or support from the external background. The futures for the U.S. markets fell by 0.2% in the morning, the oil price fell two times faster, and the Russian market is hit by profit taking from speculators, as all blue chips started the day lower,” Alor Broker senior analyst Alexei Antonov said.

The additional negative impact came from the news that the U.S. senators are considering sanctions on Russia for alleged hacking attacks at Ukraine meaning that the sanction topic has wound down, but is not closed, Antonov said.

“We expect Russia’s main trading session to start with a 0.2–0.8% contraction of the MOEX Russia Index in the range of 3,610–3,630,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

“The levels of 3,600 and 3,580 will act as the closest support, while 3,640 and 3,650 will become the resistance. In the first few minutes of trade, the MOEX Russia Index will price in the moderate worsening of the external background.”

In general, conditions for a correctional contraction of the Russian market have emerged after two sessions of growth, Manzhos said.

In the second half of the day, the market will traditionally focus on the oil prices and the start of trade in the U.S., while the release of weekly statistics on jobless claims and the January consumer price index in the U.S. may have an indirect impact on the Russian shares, he said.

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