Russian stocks to decrease on worries of oil slide below $30

MOSCOW, Jan 15 (PRIME) -- The Russian stock market will fall at Friday’s opening because the oil price consolidation above U.S. $30 is shaky and foreign market dynamics are mostly negative, analysts said.

“Technical analysis shows us chances of an RTS decrease. The oil market situation remains uncertain – attempts of the Brent futures to consolidate above U.S. $30 per barrel continue but they cannot be called definitely successful yet,” Olma senior analyst Anton Startsev said.

On Friday morning, Brent continues fluctuating near its 7-year lows, and U.S. stock market futures are decreasing, erasing earlier gains. Asian markets are sliding as well, which are negative signs for Russian market participants, Oleg Shagov, head of investment company Solid’s research department, said.

The ruble has started to stabilize above 76 per U.S. $1, which is a somewhat neutralizing factor, Startsev said. According to Finam analyst Bogdan Zvarich, Thursday’s U.S. stock market increase will support Russian stocks.

The MICEX can open at 1,670, Zvarich said.

In the second part of the trading session, Russian investors will focus on reports of U.S. Wells Fargo, U.S. Bancorp, Citigroup, and also macroeconomic statistics: retail sales, consumer prices, industrial output, Michigan University’s consumer mood gauge and business inventories, Zvarich said.

The Russian market will likely rebound later on Friday on oil price stabilization, metals prices recovery, U.S. oil and gas sector stocks rally and on the eve of a stop of aggressive emerging market asset sales, Ilya Frolov, a senior analyst at Promsvyazbank, said.

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