Russian stocks can fall as investors take profit ahead of holidays

MOSCOW, Dec 4 (PRIME) -- The Russian stock market will likely decrease on Monday beginning because of a start of profit taking ahead of the New Year holidays coupled with a decrease of oil prices, analysts said.

"Since a low of 3,195.51 of November 17 has been broken though, there is now the level of 3,125 on the horizon. After this, the decline of the MOEX Russia Index will accelerate to 3,025. This is a technical factor, because there is no need to look at the fundamental ones at the moment. The investors are taking profit ahead of New Year to buy presents for their nearest and dearest," BitRiver financial analyst Vladislav Antonov said.

The ruble continued weakening on Monday in the morning after declining against the U.S. dollar and the euro on December 1. According to Antonov, demand for ruble liquidity decreased after the main part of the taxation season ended in November. Households and importers boosted their foreign currency demand ahead of the holidays, he said.

Investors were disappointed by the results of the last OPEC+ meeting bringing about no significant output reduction plans, Antonov said. The Brent oil price plunged 5.5% since November 29 to U.S. $78.33 on Monday in the morning.

Financial marketplace Banki.ru’s senior analyst Bogdan Zvarich said that the oil price decline will pressurize the Russian stock market.

End