Russian stocks to retract on falling oil price, terrorist threats

MOSCOW, Mar 23 (PRIME) -- The Russian stock market will open with lower on Wednesday because oil prices are shrinking and the U.S. has warned that terrorists plan new attacks in Europe, analysts said.

Oleg Shagov, head of investment company Solid’s analytical department, said that Brent edged down to U.S. $41 per barrel early on Wednesday ahead of publication of U.S. final weekly oil reserves data.

“The growth of terroristic activity does not add optimism to investors since the terrorist attacks which occurred in Belgium can continue although authorities of both the West and the East are strengthening security measures,” Shagov said.

Ilya Frolov, an analyst at Promsvyazbank, said that Asian markets and U.S. S&P futures are demonstrating negative dynamics, which will add to the bearish mood in Russia.

Finam analyst Timur Nigmatullin said that cheap oil and other negative factors will make the MICEX erase gains.

Olma senior analyst Anton Startsev said that the RTS can correct downwards slightly and consolidate below 900, while oil reserves and new housing sales in the U.S. can influence trends on the Russian market in the second half of the day.

Shagov said said traders will also pay attention to speeches of European Central Bank and U.S. Federal Reserve System officials.

Russian investors will wait for releases of consolidated financial reports by RusHydro and PhosAgro, he said.

Steel producers will likely remain market leaders because of the global steel price increase, Startsev said.

Media reported that the Energy Ministry will be discuss a mineral extraction tax increase on Wednesday, which will put additional pressure on oil companies’ shares, Aton said.

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