Russian stocks can fall on oil price drop, invest activity seen low

MOSCOW, May 28 (PRIME) -- The Russian stock market is expected to open with a downward gap on Monday due to a decrease of oil prices and can trade on low volumes on the back of a holiday in the U.S. and the U.K., analysts said.

“The RTS dynamics can remain under a pressure of an unfavorable situation on the fuel market today. The Brent oil futures are approaching the level of U.S. $75 per barrel (6% lower than the level of closing seen a mere three trading sessions ago),” Olma senior analyst Anton Startsev said.

Sergei Drozdov, an analyst at investment company Finam, said that statements by Russian Energy Minister Alexander Novak about possible amendments to the OPEC plus nonmember deal terms are driving oil prices down.

Startsev said that the euro zone markets can be pressurized by a refusal by the Italian president to accept a new government lineup.

The activity of foreign investors on the Russian market will most probably be subdued on the back of holidays in the U.S. and the U.K., he said.

Drozdov said that the RTS supporting level is 1,160 and resistance 1,180.

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