Russia’s MICEX seen flat, RTS falling on oil price decrease

MOSCOW, Nov 23 (PRIME) -- Russia’s MICEX stock market index is to open flat on Monday after reaching a nine-month high, while the U.S. dollar-bound RTS will fall, since it is more vulnerable to the negative oil price dynamics, analysts said.

“I expect the opening of the Russian stock market in the zone of its closing last week (at about 1,826 of the MICEX),” Oleg Shagov, head of research department at investment company Solid, said.

Brent slid 1.12% to U.S. $44.16 per barrel at 9:09 a.m., Moscow time. Olma’s senior analyst Anton Startsev said that the prices are depressed by Venezuela’s warning that they can hit a $25 notch if OPEC remains passive.

“A downward correction of the RTS index is possible today at the start of trade, following the oil prices,” Startsev said.

The MICEX reached a nine-month high on November 20, which means that the ascending trend remains. Shagov said. The U.S. stock market futures, Asian indices and the European trading session start expectations are neutral, he said.

Hopes on improvement of relations between Russia and Western countries were misguided because the situation in Ukraine is still the deal breaker, Pavel Salas, CEO of eToro in Russia and CIS, said.

The stability of the U.S. stock market trigger a restart of growth on the Russian market on Monday and later this week, Promsvyazbank analyst Ilya Frolov said.

Russia banks will grow by inertia, oil and gas stocks will follow the U.S. pre-Black Friday rally, he said.

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