Russian stocks to fall in line with oil price decline

MOSCOW, May 18 (PRIME) -- Russian stocks may decrease at the opening on Thursday in line with falling oil prices and overall negative foreign background, analysts said.

“We expect the Russian stock market to open at around 1,990 points at the MICEX index, assuming that amid unfavorable foreign background the pressure of sales on the stock market may remain,” Oleg Shagov, head of investment company Solid’s research department, said. On Wednesday, the MICEX closed at 1,994.35.

The ultimate influence of key external factors that have a significant impact on the Russian financial market is moderately negative today, the analyst said.

Brent oil futures are decreasing amid a political crisis in the U.S., which can put the country’s economy into recession, Shagov said.

The leading U.S. stock index futures are slightly gaining after yesterday’s drop, and main Asian stock indicators are declining.

Ilya Frolov, a senior capital market analyst at Promsvyazbank, projects that the Russian stock market will decrease 0.2–0.5% at the opening.

Gas giant Gazprom’s board of directors is expected to give dividend recommendations later in the day. “In case of a positive surprise, this factor may help the MICEX index return to 2,000 points.”

The Moscow Exchange and oil and gas pipe producer TMK will release financial results, among other corporate events that can affect the domestic stock market.

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