Russian stocks may decrease on oil price slide

MOSCOW, Nov 28 (PRIME) -- The Russian stock market will likely decline on Monday at the start of the trading session due to a significant oil price fall, analysts said.

"The Monday morning is not optimistic for the local bulls. Oil broke through a support of U.S. $84–85 per barrel and sank to $81 during the Asian session," BitRiver financial analyst Vladislav Antonov said. "We expect opening with a decline in virtually the entire range of securities."

The oil prices are pressured by a continuing growth of the COVID-19 contagion numbers in China and the beginning of public unrest in the country because of the quarantine restrictions, he said. Investors hope that the OPEC+ will reduce the production quotas at a meeting on Sunday.

The nearest Brent futures fell by over 3% to $81.1 per barrel.

Senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said that that the stock market mood is negative in general, as the leading Asian floors lost up to 1.4% with the Indian bourse being an exception rising 0.3%. The key American futures eased by 0.7%.

According to Antonov, Lukoil and Gazprom Neft are likely to rise ahead of a cutoff for the interim dividend payments.

End