Russian stocks to sink as oil price decline continues

MOSCOW, Aug 17 (PRIME) -- The Russian stock market will decrease at the opening of the Monday’s trading session following oil prices, analysts said.

“Our estimates show that the influence of the key factors on the Russian stock market is moderately negative today at the start of the day,” Oleg Shagov, senior analyst at investment company Solid, said.

Brent sunk 1.20% to $48.60 at 8.52 a.m., Moscow time. Asian indices are mixed in the morning with the Chinese stocks mainly sliding.

The yuan has stabilized, reaching the official rate, which is good news for Russian traders, Olma’s senior analyst Anton Startsev said.

Russian market participants are slightly apathetic amid a vacation season but the activity will be gradually restoring throughout the rest of August, Shagov said.

The MICEX will gravitate towards a 1,700 level, and the ruble decline will ease the selloff, Vitaly Manzhos, senior analyst at Bank Obrazovanie, said. The RTS will likely correct downwards on Monday, Startsev said.

In the second half of the day, the Russian market will track oil futures’ dynamics. Statistics releases in the U.S. and the E.U. will be of less importance, Manzhos said.

End