Russian stocks may consolidate on reaction to OPEC decision

MOSCOW, May 26 (PRIME) -- The Russian stock market is likely to open flat or lower and fluctuate in a narrow range during the day on Friday amid a moderately negative global environment, analysts said.

“We expect the MICEX to open (flat) at around 1,945–1,950 and demonstrate consolidation featuring low trade volumes near the current levels,” Oleg Shagov, head of investment company Solid’s research department, said.

Olma senior analyst Anton Startsev said that from technical point of view, the RTS index downward correction may deepen, but he sees no signals for a sharp dive and that the nervous situation on the global crude market is a factor restraining purchases of Russian blue chips.

The Brent oil price has edged down almost 5% to slightly above $51 per barrel following investor disappointment with the news that OPEC and non-OPEC states approved prolongation of an oil production cut agreement for nine more months, until April 2018.

Sergei Kozlovsky, head of the research department of forex broker Grand Capital, said that the market hoped that OPEC would make additional efforts to reduce production, but it has not happened.

Investors in Russia are also likely to follow 2016 dividend recommendations of the board of directors of Federal Grid Company of Unified Energy Systems (FGC UES), container shipping company TransContainer and railway operator Freight One.

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