Russian stocks may decrease on low oil prices, terrorist threat
MOSCOW, Nov 16 (PRIME) -- Russian stocks are likely decrease at Monday opening because oil prices, albeit recovering from yearly lows, are still not high enough to support the growth, and there is no interest in risky assets after the Paris terrorist attacks last weekend, analysts said.
“The technical analysis data suggests that there is a possibility of a deepening of the RTS downward correction (and also of the Brent oil futures’ one),” investment company Olma senior analyst Anton Startsev said.
“The terrorist threat in Europe and the possibility of situation deterioration in the Middle East may become the volatility growth factors at stock exchanges worldwide and the reasons for investors’ decreasing readiness to accept risks,” Startsev said.
The MICEX will likely open flat and will consolidate near the current level, as investors will be focusing on corporate news and oil dynamics on Monday, Oleg Shagov, head of the research department at investment company Solid, said, while Pavel Salas, CEO of eToro in Russia and CIS, said that the MICEX can slide to 1,700 as traders will flee risky assets.
Brent futures fell 8% last week, which was the most pronounced decline since March but on Monday, Brent recovered 0.99% to U.S. $44.91 as 9:10 a.m. Moscow time.
Both U.S. stock market futures and the key Asian indices are falling, that is why the background for the opening of the Russian stock market is moderately negative, Shagov said.
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