Russian stocks may fall slightly as oil price growth stops

MOSCOW, May 12 (PRIME) -- The Russian stock market may open nearly flat, with a small downward gap, on Thursday because oil prices have started a downward correction after their Wednesday’s rise, analysts said.

“The opening of the Thursday’s trading session is expected to be close to the level of yesterday’s close. Buys can prevail during the day, it may take some time for the MICEX and the RTS to reach a level adequate to the oil quotations,” Promsvyazbank analyst Ilya Frolov said.

Oil futures jumped on Wednesday in the evening but are sagging about 0.3% on Thursday in the morning, which can cause a small MICEX downward gap, Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

The news that the government will not reduce the dividend norm for gas giant Gazprom, ordering it to pay 50% of its net profit, and that oil major Rosneft can pay at least 35% of its net profit under International Financial Reporting Standards (IFRS) will support bullish moods on the Russian market, Frolov said.

Power producer E.On Russia will publish an IFRS financial report for January–March, while the board of directors of hydropower giant RusHydro will meet to discuss recommendations for dividends, which will be the most important corporate events on Thursday, Oleg Shagov, head of investment company Solid’s analytical department, said.

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