Russian stocks to fall as oil prices resume decrease

MOSCOW, Feb 19 (PRIME) -- The Russian stock market will shed its Thursday’s gains on Friday at the start of the session because oil prices have started to fall, and there is a downbeat mood on Asian markets, analysts said.

“The influence of the key factors which significantly affect the Russian financial market behavior 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 fell 0.44% to U.S. $34.13 per barrel at 9:12 a.m., Moscow time, on the back of a U.S. report of historic record high oil reserves, Shagov said.

U.S. stocks futures are “trying to win back” the losses of indices on Thursday, but Asian markets are showing negative dynamics and the European premarket signifies big chances for a small downward gap at the market opening, Shagov said.

The MICEX will likely be in the range between 1,745 and 1,810 in the nearest future, Premier-broker analyst Alexei Kozlov said.

Later on Friday, Russian market participants will pay attention to an E.U. summit, where agreements between the E.U. and the U.K. will be discussed amid U.K. preparations to hold a referendum in 2016 on exit from the E.U.

Prices for Russian blue chips will be negatively affected by an upcoming holiday on February 23, Anton Startsev, senior analyst at investment company Olma, said.

Investors are also waiting for a meeting of the G20 finance ministers on February 26–27, any verbal interventions will have a positive impact on traders’ moods, Kozlov said.

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