Russian stocks can fall as geopolitical news impact continues

MOSCOW, Aug 21 (PRIME) -- Russian stocks can decline at the opening on Monday because the flow of news signaling an increase of geopolitical tensions has not drained, analysts said.

“At the time when global oil prices remain high enough to support investors’ interest in Russian securities, the influence of the geopolitical factor remains negative for the market,” Olma senior analyst Anton Startsev said.

Joint U.S.–South Korea drills starting on Monday will cause a rise of tensions on the Korean Peninsula, Startsev said.

Last week’s terrorist attacks in Spain and rumors about possible resignations by aides to U.S. President Donald Trump pressurized global market indices on August 18. According to Viktor Makeyev, financial analyst at Gerchik&Co, the negative background can make the Russian market dive even deeper on Monday.

Startsev said that as a result the RTS will unlikely leave its consolidation range.

Makeyev said that Russian oil companies can react to growing oil prices by restarting the increase.

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