On Tuesday, December 14, trading on the Russian stock market opened with a sharp drop in the Moscow Exchange index.

During the morning session, the stock indicator dropped by 6.4% - to 3353 points.

The last time a similar value could be observed back in early March 2021.

However, already during the main trades, the indicator managed to partially win back the fall.

Moreover, in the middle of the day, the Moscow Exchange index showed positive dynamics and briefly rose above 3638 points.

The drop in stock quotes at the beginning of the day was partly due to technical factors.

Natalya Milchakova, deputy head of the Alpari information and analytical center, expressed this point of view in a conversation with RT.

“The launch of morning trading on the Moscow Exchange had a certain impact on the market decline.

At night, one could observe a decline in American stock indices, and early in the morning, Asian quotes also fell.

The Russian market, following the global dynamics, also declined immediately after the opening of the morning session, ”the expert explained.

As a reminder, on December 6, the Moscow Exchange launched morning trading in shares.

If the main session traditionally starts at 09:50 Moscow time, then the additional session starts earlier - at 06:50 Moscow time.

The initiative allows clients from Siberia, the Far East, and the Asian region to complete transactions at a more convenient time for them.

This was reported in the press service of the trading platform.

At the same time, it is morning trading that is more subject to fluctuations, says Igor Dodonov, an analyst at FG Finam.

According to him, this state of affairs is due to the relatively low number of transactions on the exchange during the additional session.

“Such a sharp morning market drawdown was observed in conditions of low trading liquidity.

This probably happened because the main players are not yet present on the market at such an early time, "the interlocutor of RT explained.

In general, as experts note, the Mosbirzh index has been steadily decreasing over the past two months, and during this time the indicator has dipped by more than 15%.

Analysts explain the observed dynamics to a large extent by the increased tension in the world political arena.

“In November-December, geopolitical risks in relation to Russia increased sharply.

Western countries are not shy in expressions, and controlled foreign media are racing to announce sanctions against Russian financial institutions, "said Mikhail Zeltser, an expert on the BCS World of Investments stock market.

Also, market players react negatively to the delay in the launch of Nord Stream 2.

Nikolay Pereslavsky, an employee of the department of economic and financial research of the CMS Institute, told RT about this.

As a reminder, in November the German regulator suspended the certification of Nord Stream 2 AG as an independent operator of Nord Stream 2.

The procedure was promised to be resumed after the company creates a subsidiary in Germany.

Now Nord Stream 2 AG is in the process of establishing a separate structure in Germany.

Nevertheless, according to the head of the German Foreign Ministry, Annalena Berbock, the pipeline project "does not yet comply" with the norms of the European Union.

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In addition, market participants are alarmed by the situation with the COVID-19 pandemic in the world, says Igor Dodonov.

The spread of the omicron strain of the SARS-CoV-2 coronavirus has heightened investor concerns about the outlook for the global economy, he said.

In these conditions, players began to actively withdraw money from risky assets, including ruble assets, which puts pressure on stock prices.

“Nevertheless, high prices for oil and metals continue to play in favor of the Russian stock market.

In addition, it is worth noting the relatively low cost of Russian shares compared to peers in developed and emerging markets, ”added Dodonov.

According to Natalia Milchakova, investor interest in Russian securities is further fueled by expectations of strong financial results of large companies at the end of 2021.

Also, market participants are counting on high dividend yield on the shares of many companies.

“Depending on the state of the oil industry and the geopolitical situation, the Russian stock market will have additional factors for growth or decline.

According to our estimates, fluctuations in stock prices will continue at the end of 2021 and in the first quarter of 2022.

At the same time, by the beginning of the second quarter, the negative will most likely be won back by the market, and the Mosbirzhi index will be able to return to the level of 4000 points and above, ”concluded Milchakova.