Russian stocks may rise on expectations of positive OPEC decision

MOSCOW, May 25 (PRIME) -- The Russian stock market is likely to open slightly higher amid a generally positive external background on Thursday, analysts said.

“We expect the MICEX index to open at around 1,955 and believe it may continue its attempts to edge up out of the current zone of consolidation, which is characterized by low trade volumes,” Oleg Shagov, head of investment company Solid’s research department, said.

The Brent oil price is trading at this month’s record high level, around $54.5 per barrel, ahead of a decision on prolongation of an oil production cut agreement by OPEC and non-OPEC ministerial meeting.

Valery Polkhovsky, an analyst at the Forex Club group of companies, said that if the decision is made in the previously announced state, this could be a not very strong positive signal for the market, as the expectations have already been included in the prices. The scenario could lead to a jump to $57-58 per barrel and a further decline on profit taking.

The expert also said that OPEC needs to surprise the market to provide a strong upward drive to oil quotations.

The U.S. indices futures and major Asian stock market are trading in the green territory and the European pre-market trading also points to a higher start.

Investors in Russia will also follow publication of IFRS financial results for January-March by uncut diamond mining giant ALROSA and Bank Saint Petersburg, the biggest bank in Russia’s northwest, as well as 2016 dividend recommendations of national flag carrier Aeroflot’s board of directors among other corporate events.

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