Russian stocks may open lower on economic minister detention

MOSCOW, Nov 15 (PRIME) -- Russian stocks are likely to open lower on Tuesday on the news that Economic Development Minister Alexei Ulyukayev was detained on bribery charges at night, analysts said.

“I think that the MICEX index will be trading in the red zone below a 2,000 point mark in the first half of the day…Another factor favoring the correction is the news flow, as this night media reported that Economic Development Minister Alexei Ulyukayev was detained and a criminal case was launched against him,” Timur Nigmatullin, an analyst at investment company Finam, said.

The Investigative Committee said that it had caught Ulyukayev red-handed while he was receiving a U.S.$2 million bribe for granting his ministry’s approval that allowed state-owned oil major Rosneft to purchase the government’s 50.08% stake in oil company Bashneft.

But Oleg Shagov, head of investment company Solid’s analytical department, favored a higher opening of the market because the Brent oil futures are rising above U.S. $45 on the news that the OPEC countries are making efforts to reach an oil production freeze agreement.

“Futures for U.S. stock indices are growing, but the main Asian floors show no flat dynamics,” he said.

The MICEX index may rise to 2,030 at the beginning of the day and regain some Monday losses during the day, Shagov said.

Anton Startsev, a senior analyst at investment company Olma, said that the Brent price of above $45 and a lull in growth of yields on the world debt market will help the RTS index stop its downward correction.

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