Russian stocks seen falling on oil price decrease, Navalny arrest

MOSCOW, Jan 18 (PRIME) -- The Russian stock market will likely open lower on Monday due to the decline of oil prices and arrest of opposition politician Alexei Navalny, analysts said.

"A deepening downward correction close to 1,450 of the RTS index is possible in the short term,” Olma senior analyst Anton Startsev said.

“The external background looks quite unfavorable for the Russian stock market at the start of trade: a downward correction of fuel prices and a strengthening of the U.S. dollar against a basket of global currencies is taking place reducing comparable attractiveness of the developing markets."

Alor Broker analyst Alexei Antonov said that the external background for the Russian stock market is negative as the U.S. stock market futures lose 0.2%, and the oil prices fall.

The return and arrest of Navalny has triggered market concern as some countries called for further sanctions against Russia, Antonov said.

According to Antonov, the energy sector underperforming compared with the rest of the market maintaining positive outlook as many companies are to pay significant dividends.

The U.S. market will be closed for Martin Luther King Jr. Day, which is why, according to Promsvyazbank chief analyst Bogdan Zvarich, market activity will be lower than usual.

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