Russian stocks to decrease under oil price pressure

MOSCOW, Dec 14 (PRIME) -- Russia’s MICEX stock market index is likely to fall slightly at Monday opening, while the RTS may see a more pronounced decline on the back of the continuing oil price slide, analysts said.

“From the point of view of technical analysis the RTS index decrease possibility is still there,” Olma senior analyst Anton Startsev said. He said that the fuel market situation is unfavorable, which will drag down the ruble exchange rate.

Brent decreased 0.69% to U.S. $37.67 per barrel at 9.05 a.m. Moscow time. An upcoming expiration of futures will pressurize oil prices and can add volatility to the stock market, Oleg Shagov, head of investment company Solid’s analytical department, said.

Investors’ activity will remain low this day as they will expect details from the next U.S. Federal Reserve System meeting, Startsev said.

The ruble devaluation will support the MICEX, and it may open at about 1,710 after closing at 1,720.31 on December 11, Shagov said. The central bank holds a tight grip on the ruble liquidity and it promises to launch foreign currency repo deals, which is why the ruble decrease will underscore as compared with the oil price drop, Timur Nigmatullin, a Finam analyst, said.

Oil and gas companies will lose the most during the day, Nigmatullin said.

Moscow Exchange’s stocks are a protective asset and will likely see positive dynamics, Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

The posting of the euro zone’s industrial output figures for October will somehow influence the Russian stock market trends later in the day, Manzhos said.

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