Russian stocks to dive as Doha oil freeze talks fall through

MOSCOW, Apr 18 (PRIME) -- The Russian stock market can plunge on Monday at the start of the trading session because investors’ hopes for an oil output freeze agreement and a price increase were dashed, analysts said.

“The influence of the key factors which significantly affect the behavior of the Russian financial market is negative today at the start of the day in our estimates. Brent quotations decreased significantly after the meeting of oil producers in Qatar to discuss oil output restrictions ended with no result,” Oleg Shagov, head of investment company Solid’s research department, said.

Oil producing countries have failed to arrange oil output retention at the level of January at the meeting. Saudi Arabia insisted that all OPEC members participate in the pact, an impossible term in the absence of Iran. Tehran will stick to its policy of regaining the market share lost during the years of sanctions, officials said earlier.

Brent fell 4.18% to U.S. $41.30 per barrel at 9:00 a.m., Moscow time.

The MICEX will likely open close to a 1,900 notch and will remain under the sell-off pressure throughout the session, Shagov said. The weakening of the ruble will prevent a dramatic decrease of the index, he said.

The RTS will likely deepen the downward correction on Monday, Olma’s senior analyst Anton Startsev said.

Shares of the overheated banking sector will be the session’s outsiders. Sberbank can sag by 3–4%, Finam analyst Timur Nigmatullin said.

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