Russian stocks seen flat on low trade activity ahead of holiday

MOSCOW, May 8 (PRIME) -- The Russian stock market may open slightly lower and consolidate during the day on Tuesday thanks to correcting oil prices and upcoming Victory Day celebration, analysts said.

“The market is likely to be calm today with investor activity continuing to fall ahead of a pause in trading and also due to the situation on the crude market with the Brent oil futures demonstrating signals for a downward correction,” Olma senior analyst Anton Startsev said.

The Russian market will be closed on Wednesday for Victory Day celebration.

Tuesday is a deadline for U.S. President Donald Trump to make a final decision on a possible withdrawal from the 2015 Iran nuclear deal which will influence the crude market, Startsev added.

Vitaly Manzhos, senior risk manager at investment company Nord Capital, expects the MOEX Russia Index to fall around 0.5% to 2,285 at opening to price in emerging worsening of the oil market. The index may consolidate later in the day.

In Russia, investors will also be interested in decisions on dividends for 2017 by power producer Unipro and fertilizer producer Acron, as well as IFRS financial reports for January–March of Unipro and Magnitogorsk Iron and Steel Works (MMK).

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