Investors may continue to flee Russian stock market at open

MOSCOW, March 4 Tue Mar 4, 2014 12:48am EST

MOSCOW, March 4 (Reuters) - Russia's stock market, which lost nearly $60 billion on Monday, may fall further on Tuesday on escalating tensions over neighbouring Ukraine, analysts said on Tuesday, suggesting that the losses may be muted.

"There is potential for further losses, however not of course as it was yesterday when the market felt the first shock," said Alfa Bank economist Natalia Orlova.

She said the stock market and the rouble could rise at the beginning of the session.

The MICEX index of Russian shares tumbled 10.8 percent to close at 1,288.8 points and the dollar-denominated RTS .IRTS collapsed 12 percent to 1,115.1 points on Monday after President Vladimir Putin got parliamentary approval at the weekend to deploy troops into Ukraine if the situation worsened.

"The lack of certainty over further developments of the situation in Ukraine would continue to inflict downside pressure on the markets," Moscow-based Olma brokerage said in a morning note to clients.

"Capital flight from Russia-oriented funds will continue."

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