Russian stocks may open flat as market waits for OPEC+ meeting

MOSCOW, Jun 2 (PRIME) -- The Russian stock market is likely to start Thursday’s trading neutrally on the absence of serious drivers while investors are waiting for the OPEC+ to decide on the oil output reduction deal, analysts said.

“We expect sideways dynamics. No clear signals are coming from the markets, and the news flow is calm. The guidance for the MOEX Russia Index is in the range of 2,350–2,400,” Georgy Vashchenko, head of Freedom Finance’s department for operations on the Russian stock market, said.

Investors did not use short positions on Tuesday, and trade activity did not grow as compared with the previous days. The markets are showing sideways dynamics, and the market lacks motivation for speculative operations. Volatility on the stock and currency markets may start only if the oil price changes significantly, Vashchenko said.

“Today attention will be focused on oil. The planned ministerial meeting of the OPEC+ members is to happen to discuss production. Media reported that Saudi Arabia was ready to raise its own production if Russia has to cut its output seriously due to the sanctions,” Alexei Antonov, head of Alor Broker’s investment consulting department, said.

Taking into account the fact that the shares of Russian oil companies did not rise when the oil price was above U.S. $120 per barrel, the fact that it is now below $115 may trigger sales, dragging the Russian stock market down, he said.

“But in general, the situation remains the same, and the market is still in the sideways movement channel in the range of 2,200-2,500. There is no reason for it to leave the channel. Much will depend on dynamics of the ruble, which is unpredictable in the short term and depends on the sales of foreign currency revenue,” Antonov said.

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