Russian stocks can open flat on mixed background, consolidating oil

MOSCOW, May 30 (PRIME) -- The Russian stock market is likely to open with a marginal dynamics on Tuesday due to a neutral global environment and a lack of major drivers, analysts said.

“We expect the Russian stock market to open (flat) at around 1,940 of the MICEX today, and we believe the benchmark may try to break out of the consolidation range soon due to corporate news or changes of the external background,” Oleg Shagov, head of investment company Solid’s research department, said.

The Brent oil price bounced back to slightly above U.S. $52 per barrel after a sharp correction on the news that OPEC and non-OPEC states approved a simple prolongation of an oil production cut agreement for nine months.

Artyom Deyev, a lead analyst at brokerage company Amarkets, said that the decision disappointed investors, who had been waiting for stronger measures like an additional decrease of production by 400,000–600,000 barrels per day. The hydrocarbon market is likely to see new sales soon, the expert said and added that a $50 per barrel mark may be reached.

The major U.S. stock market indices are looking flat and Asian floors are demonstrating mixed trading, Shagov said. 

Russian traders may track 2016 dividend recommendations by the boards of directors of oil pipeline monopoly Transneft and energy grid operator Rosseti; and publication of financial results of fertilizer producer Acron, country’s second biggest lender VTB Bank, power holding Inter RAO and oil company Lukoil.

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