Russian stocks to fall at opening on dividend cut-off in Sberbank

MOSCOW, May 11 (PRIME) -- The Russian stock market will fall at opening on Tuesday as the external background is unfavorable, while the dividend cut-off in top bank Sberbank will lead to a significant contraction of the MOEX Russia Index, analysts said.

“The futures for the U.S. indices lose half a percentage point this morning and the oil prices fall, this is why the contraction that started on Monday will continue this morning. Also, the heavyweight share of Sberbank will trade without the dividends, and this factor alone will push the MOEX Russia Index down by at least 0.5%,” Alor Broker senior analyst Alexei Antonov said.

Algo Capital’s senior risk manager Vitaly Manzhos said expects the MOEX Russia Index to open with a fall of 0.7–1.2% in the range of 3,650–3,670. In the first few minutes of trade, the index will price in a significant worsening of the external background.

Andrei Vernikov, head of the investment research and education department of investment group Univer, said that the background for the Russian market is negative as the U.S. indices fell on Monday with the NASDAQ index losing 2.55% and the S&P 500 falling by 1%.

“The situation looks negative in the morning, but there are factors that soften the external negative impact. Investors are waiting for the June meeting of the leaders of Russia and the U.S., and hope that the geopolitical tension will ease. (U.S. President) Joe Biden said that there were no data proving Russian involvement in the hacking of Colonial Pipeline company, which means that the U.S. side is not interested in canceling the June meeting,” Vernikov said.

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