Russian stocks seen falling slightly as coronavirus worries continue

MOSCOW, Feb 10 (PRIME) -- The Russian stock market will likely continue a downward correction of the previous week on Monday as worries about the spread of coronavirus continue to pressure risky assets, analysts said.

“We expect continuation of correction. The market will react to the dynamics on the foreign commodities markets and stocks exchanges,” Georgy Vashchenko, head of the department for operations on the Russian stock market at investment company Freedom Finance, said.

Investment company Olma’s senior analyst Anton Startsev said that the worries about the spread of coronavirus in China have started to fade but volatility on foreign markets keeps demand for risky assets low.

Alor Broker analyst Alexei Antonov said that the continuation of a oil price fall will depress the Russian assets, but growth of the U.S. stocks futures will likely compensate the negative trend at the start of the Russian trading session.

Antonov said that Norilsk Nickel will likely lead the market in the morning on the back of a global nickel price rise.

Gazprom might recover because problems with construction of the Nord Stream-2 gas pipeline will probably end as the Akademik Chersky ship left the Port of Nakhodka for Singapore to upgrade the equipment and complete works on Nord Stream-2, the analyst said. He added that since the U.S. threaten to slap new sanctions on investors of the project, the prospects of Gazprom’s growth are unclear yet.

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