Russian stocks to decline at opening as oil prices retreat to $40
MOSCOW, Mar 21 (PRIME) -- The Russian stock market will open lower on Monday because oil prices have started sagging and are approaching a U.S. $40 per barrel level, analysts said.
“The influence of the key external factors which significantly affect the behavior of the Russian financial market is moderately negative today at the start of the day in our estimates,” Oleg Shagov, head of investment company Solid’s research department, said.
Brent decreased 0.66% to $40.93 per barrel as of 9:04 a.m., Moscow time, which will be the key bearish influence when trading starts, Shagov said.
But Pavel Salas, general director for Russia and CIS at brokerage company eToro, said that the oil price may recover quickly because the International Energy Agency (IEA) was allegedly mistaken when accessing the oil supply amount,.
The news that the rating agency Standard & Poor’s retained Russia’s sovereign rating at BB+ will most probably be taken as good news, Finam analyst Timur Nigmatullin said.
The MICEX is expected to open at 1,910 and can fall to 1,900 in the nearest future from its recent seven month highs, Shagov said. The RTS can slightly sag in the morning because it is overbought, Olma senior analyst Anton Startsev said.
News about a forthcoming OPEC–non-OPEC meeting to freeze oil output will shape trends during the entire week. Traders will also take cues from the weekly U.S. oil reserves report, Salas said.
Mobile operator MTS will publish a financial report on Monday, which will be in focus of Russian investors’ attention, Shagov said. The shares might get under pressure because a weak report is expected, Nigmatullin said.
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