Russian stocks to slide on strong oil price decrease

MOSCOW, Feb 10 (PRIME) -- The Russian stock market will open lower on Wednesday morning as oil prices decreased noticeably, analysts said.

“My estimates show that the influence of the key factors which affect the Russian financial market behavior significantly is moderately negative today at the start of the day,” Oleg Shagov, head of investment company’s Solid research department, said.

On Tuesday evening, Brent plunged to about U.S. $30.5, on Wednesday it recovered to 2.54% to $31.09 as of 8:55 a.m., Moscow time.

The U.S. stock market futures and the key Asian indices are in the red zone which will also pressurize Russian stocks, Shagov said.

UFS IC analyst Alexei Kozlov said that global markets are under pressure, risky assets most of all, because the world economy’s outlook has deteriorated.

Vitaly Manzhos, senior analyst at Bank Obrazovanie, said that the MICEX is expected to open at about 1,715. The closest support levels will stand at 1,700 and 1,690; the resistance zone will be 1,730–1,740. On Tuesday, the index fell to a two-week low, which is a sign of a bearish trend, he said.

Olma senior analyst Anton Startsev said that the RTS will open below 700.

Finam analyst Timur Nigmatullin said that the rebound of oil prices may support banks and the oil sector, which can become growth leaders later on Wednesday.

The U.S. will publish oil reserves figures, which will provide important insights for Russian investors. It is expected that a speech of Chairwoman of the U.S. Federal Reserve System (Fed) Janet Yellen before the Congress will be published and adjust investors’ forecasts for the future Fed policies, Startsev said.

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