Russian stocks may slip in correction, ahead of holidays

MOSCOW, Apr 27 (PRIME) -- The Russian stock market may open flat and slip during the day on Thursday due to a moderately negative external background and the upcoming holidays, analysts said.

“We expect the MICEX to open at around 2,026 and believe the index is likely to correct down following five consecutive days of growth and ahead of the long holidays,” Oleg Shagov, head of investment company Solid’s research department, said.

The Russian markets will be closed on Monday for May Day celebrations.

Andrei Vernikov, deputy CEO for investment research of Zerich Capital Management, said that May 1 will also be a public holiday in some European states, which will celebrate the Labor Day, so traders are unlikely to be willing to keep their long position ahead of the lengthy week-end and may take profit.

Major Asian markets are in the red and the European pre-market trading points to a lower start of trade, while the U.S. stock indices futures are flat. The Brent oil price is still consolidating just above $52 per barrel unable to move higher despite positive crude stocks statistics of the U.S. Energy Information Administration.

Shagov also said that investors will focus on the decision of the European Central Bank concerning its future monetary policy.

In Russia, investors may also be interested in IFRS results publications of gas giant Gazprom, steelmaker Novolipetsk Steel (NLMK), retailers Dixy Group and X5 Retail Group and meat producer Cherkizovo Group, as well as 2016 dividend recommendations of the boards of directors of Tatneft and TGC-14.

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