Russian stocks likely to open higher on oil price optimism

MOSCOW, May 22 (PRIME) -- The Russian stock market is likely to open flat or slightly higher on Monday amid a moderately positive external background, analysts said.

“We expect the MICEX index to open at around 1,960–1,965 and believe it may try to win back previous May losses,” Oleg Shagov, head of investment company Solid’s research department, said.

The Brent oil price has risen to above $54 per barrel on investor optimism about plans of OPEC and non-OPEC oil producers to meet later this week and prolong an oil output cut agreement for nine more months.

“Brent oil may jump to over $55–57 (per barrel) on this background,” Forex Club analyst Irina Rogova said.

The U.S. index futures and major Asian benchmarks are trading in the green territory, while the European pre-market trading points to a higher start of trade.

The Russian market will also be driven by releases of IFRS financial reports by Bank Saint Petersburg and Tinkoff Bank for January–March, as well as 2016 dividend decisions of the boards of directors of power grid company Lenenergo, power generating company RusHydro, and Center and Volga Interregional Distribution Grid Company (Center and Volga IDGC).

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