Russian stocks likely to open gap up thanks to Gazprom’s dividends

MOSCOW, Aug 31 (PRIME) -- The Russian stock market can open with a significant upward gap on Wednesday thanks to gas giant Gazprom’s decision to pay 51.03 rubles per share in dividends for January–June, released late on Tuesday, analysts said.

“We expect the Russian stock market to open with a sharp rise of 4–10% of the MOEX Russia Index to the range of 2,400–2,550… Unexpected news on Gazprom’s decision to pay large dividends creates conditions for the MOEX Russia Index to open gap up,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

The benchmark is likely to shift to volatile consolidation later in the day, following Gazprom’s stocks, he added.

Senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said that Gazprom’s dividends of 51.03 rubles per share will correspond to a yield of 25% so the MOEX Russia Index can make another step to the nearest growth target of 2,350.

Manzhos said that the core U.S. indices futures are rising by around 0.5–0.7%, the Brent oil price has inflated by 0.8%, and the Asian markets are seen around 0.4–0.5% lower so the global environment can be characterized as uncertain.

Zvarich said that possible deterioration of the external background will not impact local stocks.

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