Russian stocks to decline as oil plummets, foreign mkts sag

MOSCOW, Aug 24 (PRIME) -- The Russian stock market will see a decrease at the opening of the trading session on Monday because oil prices fell significantly, and foreign markets are demonstrating negative trends, analysts said.

“I expect the Russian stock market opening with the MICEX index at 1,660 and with a decrease of the RTS, while there will be an increased turbulence of the domestic blue chip quotations,” Oleg Shagov, senior analyst at investment company Solid, said.

The RTS may lose more than 2% at the opening, while the MICEX will open in a zone of 1,650–1,655, Promsvyabank’s analysts Ilya Frolov and Yevgeny Loktyukhov said.

Brent plunged 2.42% to U.S. $44.36 per barrel at 9.00 a.m., Moscow time, which is the key negative factor for Russian securities, Shagov said.

A downbeat mood in Asia, MSCI Emerging Markets index’s losses and the decline of the U.S. stock market futures will take their toll upon the Russian assets’ price as well, he said.

Worries over the Chinese economy have become a part of an endless cycle which includes price descending at commodities markets, growth of volatility on stock markets worldwide and the U.S. stocks' decrease, Olma’s senior analyst Anton Startsev said. This tendency is extremely negative for Russian assets, he said.

In the second half of the session on Monday, both Russian indices will start a volatile consolidation, Vitaly Manzhos, senior analyst at Bank Obrazovanie, said. Recovery is unlikely if the negative background remains, he said.

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