Russian stocks to continue falling on low oil prices

MOSCOW, Mar 16 (PRIME) -- The Russian stock market will fall on Monday morning because low oil prices give it no chances to rebound, analysts said.

“We think that the MICEX, which is strongly oversold locally, may continue the trend by inertia, sliding to 1,615-1,620 at the start of the session, but it has a potential to rebound to 1,635-1,655 during the session if the external situation is stable,” Promsvyazbank said.

The Brent price fell 0.90% to U.S. $54.18 per barrel at 9.23 a.m., Moscow time, and this is the main reason why Russian traders will continue sales, the analysts said.

The central bank’s recent decision to cut the key rate to 14% from 15% will not add optimism, because interest rates for corporate loans will remain “uncomfortable,” Vitaly Manzhos, analyst at Nord-Capital, said.

On Monday, investors will pay attention to the U.S. industrial output figures because they will affect a decision of the Federal Reserve System, which will hold a two-day meeting starting on Tuesday, Olma’s senior analyst Anton Startsev said.

End