Russian stocks seen falling early ahead of OPEC plus meeting

MOSCOW, Nov 30 (PRIME) -- The Russian stock market will likely decrease on Monday at the start of trading, following the oil trend ahead of a meeting of OPEC plus deal participants, analysts said. 

"A certain downward correction of the RTS index is not ruled out today at the start of trading,” Olma senior analyst Anton Startsev said.

“The oil contracts’ prices were under the pressure due to the disagreements between the participants of OPEC plus who are considering prolonging the oil production restrictions (in accordance with the current agreement, the production quotas must rise from January, the question of prolongation will be considered today at an OPEC plus conference)."

The Brent oil price fell by 1.74% to U.S. $47.34 per barrel as of 9:13 a.m., Moscow time. Bloomberg reported that the OPEC+ held an informal meeting on November 29, and failed to agree on the future of the deal because Russian Deputy Prime Minister Alexander Novak spoke in favor of postponing the supply hike currently scheduled for January, while the UAE and Kazakhstan opposed.

Elena Shishkina, analyst at Univer Capital, said that the markets expecting an eventful week as head of the U.S. Federal Reserve System Jerome Powell and Secretary of Treasury Steven Mnuchin will speak before the banking committee of the Congress on Tuesday. European Central Bank Chairwoman Christine Lagarde will speak on Monday and Tuesday. OPEC plus and the Eurogroup will meet on Monday.

Alor Broker analyst Alexei Antonov said that ferrous metals can become the market leaders on the back of an expected ruble fall. Sberbank will hold an investor day, and good news can make it the gain leader of the day.

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