Russian stocks to recede as oil prices decrease, Asian shares drop

MOSCOW, Aug 31 (PRIME) -- The Russian stock market indices will pare gains on Monday because oil prices have resumed their decline and Asian indices are mostly falling, analysts said.

The MICEX will open at about 1,715, and the RTS is likely to demonstrate a 0.5-1.0% decrease, Oleg Shagov, head of analytical department at investment company Solid, said.

“In conditions of an unfavorable external background, the domestic stock market can enter a zone of turbulence again after a four-day growth, and the oil price will remain the key factor of its dynamics,” Shagov said.

Brent decreased 1.42% to U.S. $49.34 per barrel at 9.07 a.m., Moscow time.

The U.S. stock market futures are falling and Asian key indices are demonstrating mostly negative dynamics, which create a negative background for the Russian market on Monday, Vitaly Manzhos, senior analyst at Bank Obrazovanie, said.

China has asked brokers to raise contributions to a stock market support fund and to buy back own shares, but the market continues sagging, analysts said.

Russian indices will be affected by oil futures in the second half of the day. Oil prices are at a comfortable level still, this is why the morning’s selloff will not continue later in the day, Manzhos said.

Possible changes in the staff of Russian Grids can trigger speculative growth, VTB24 analyst Stanislav Kleshchyov said.

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