Russian stocks to fall on oil price slide, ahead of long holidays

MOSCOW, May 6 (PRIME) -- The Russian stock market will likely sag on Friday morning before three-day May holidays because investors would want to consolidate their gains as the oil price falls, analysts said.

“Given the negative external background, falling oil prices and a Friday before a second part of May holidays factor, you should not expect an increased demand for ruble assets,” Finam analyst Timur Nigmatullin said.

Russian markets will be closed on May 9 for Victory Day celebrations.

Brent decreased by about 1% to U.S. $44.7 per barrel as of Friday morning, while Asian markets sank on the back of a weak Chinese purchasing managers’ index (PMI). The U.S. stock market futures dipped and, all these factors will take their toll on the quotations of Russian assets, Nigmatullin said.

The MICEX will ease at the beginning of the session but can break a 1,900 notch later in the day, Promsvyazbank analyst Ilya Frolov said. The RTS may correct downwards and test a 900 level, Anton Starstev, leading analyst at investment company Olma, said.

The banking sector is likely to become the market outsider on Friday, Nigmatullin said.

Volatility on the Russian market can increase after the U.S. non-farm payrolls release, Startsev said.

A report by Magnitogorsk Iron and Steel Works (MMK) will provide important data, Nigmatullin said.

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