Russian stocks to open flat on Sovcomflot dividend decision

MOSCOW, Apr 13 (PRIME) -- The Russian stock market is likely to open neutrally on the news that shipping company Sovcomflot will pay half of its profit in dividends instead of 100% in a move that the market believes points to the dividend policy of other state companies, analysts said.

“We expect the MOEX Russia Index to continue consolidation around the current levels close to 2,550 today. Sovcomflot’s dividends were a letdown, and it may undermine investor belief in great dividends of other state-controlled companies, which may hurt the companies’ shares. Also, the recent worsening of the external background will act as another negative factor,” Alexei Golovinov, senior analyst at Promsvyazbank, said.

BCS World of Investment said in a research note that the Russian market was in a state of uncertainty, and the most probable short-term scenario was consolidation because of a lack of drivers.

Bogdan Zvarich, senior analyst at financial platform Banki.ru, said that the background for the market was negative with the Asian bourses losing up to 0.5%, and the futures for the U.S. indices remaining almost flat. The Brent oil price lost 0.5% to U.S. $86.9 per barrel after showing great growth on Wednesday.

Still, the MOEX Russia Index may grow slightly at the opening because it may price in a serious growth of the oil prices on Wednesday, Zvarich said.

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