Russian stocks fall on external pessimism over Omicron, weak crude

MOSCOW, Dec 20 (PRIME) -- The Russian stock market decreased on Monday, startled by weakening crude oil and mild disarray on major foreign platforms amid Omicron’s spread across the globe, analysts said.

The MOEX Russia Index fell 1.46% to 3,669.05 and the RTS decreased 1.61% to 1,557.64.

According to Bogdan Zvarich of Banki.ru, the Russian stock market continued the negative trends of the previous trading session on Monday, as Brent oil futures fell by 3.8%, retreating below U.S. $71 per barrel, which exerted pressure on the Russian companies’ shares. The situation on key western platforms also contributed to massive share sale-offs today.

“Risk aversion prevailed on global stock exchanges, provoked both by expectations of tougher monetary conditions and the spread of the omicron strain. … Western investors may also be looking to close their positions before the long Christmas weekend,” Yelena Kozhukhova, analyst at Veles Capital, said.

As Kochetkov of Otkritie Research said, the new phase of the pandemic happens to coincide with the beginning of the cycle of monetary tightening, which is an effective recipe for triggering investors’ flight from hazard reflex.

“The rapid spread of the Omicron strain of COVID-19 threatens economic growth with new quarantines,” Kochetkov said.

Oksana Kholodenko from BCS Investment Group and Yegor Zhilnikov of PSB Bank also noted that the fear of Omicron spurred sale-offs in Russia and terrorized global oil market.

Below are the MOEX Russia Index’ five most active stocks on Monday:

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-2.34	288	21.562
Gazprom	-0.81	324.64	20.965
Lukoil	-5.3	6,316.5	10.434
Norilsk Nickel	-0.15	21,706	4.325
VTB Bank	-1.59	0.04616	2.772

(73.7330 rubles – U.S. $1)

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