Jul
24
Wednesday’s stock market has been moving at a negative vector. The breaching of two important technical levels was the primary reason to drop for quotes of most of liquid shares. Aside from this, during the day at the back of reinforcing USD rate, oil prices have achieved their 6 weeks lowest prices, which slapped quotes of Russian oil & gas companies. The banking sector however, compensated for the latter fall, using the improvement in West’s financial sector. At the end of the trading session, Russian stock market received support from expanding US indices futures. Note though - the weakly negative correction occurred at low turnovers, indicating institutional investors being cautious over deals at the back of unstable external conditions.
At the end of trading session RTS lost 0.55% and closed at 2111.93 points. Some significant negative influence upon the indicator has been provided by stocks of Gazprom (-2.29%), LUKOIL (-1.4%) and Surgutneftegas (-2.23%). The support was evident by preferred shares of Surgutneftegas (+1.97%), as well as common shares of Sberbank (+2.03%) and NLMK (+1.7%).
RTS classic turnover has formed 23.1 mn USD. The primary demand was enjoyed by stocks of Sberbank (5.1 mn USD), LUKOIL (4.1 mn USD) and Gazprom (4.1 mn USD).
We think that today the drop of Russian stock market may continue. Just as we have said previously, technically – in short-term the market is weak, whereas another evident cut of oil price could “light up the fire”, causing sales of oil & gas companies stocks. We think that today’s RTS could go down to 2100 points.
Main Stock news
Estimation of LUKOIL’s 1H 2008 net income formed 7.2 bn USD.
On Wednesday, ConocoPhillips, LUKOIL’s major shareholder, published its 1H 2008 financial report, reflecting the share of 1.484 bn USD in net income of Russian company, says company’s report.
Other Stock news
Polyus Gold’s operating and unaudited results under IAS.
Polyus Gold’s unaudited revenue, according to IAS report formed 508 mn USD. Company’s statement indicates, Polyus Gold’s audited sales formed 309 mn USD in 1H 2007. Gold production was increased by 20%, to 599 th troy ounces (17.4 tons).
Polymetal increased silver and gold production by 11% and 20%.
According to 1H 2008 results, Polymetal, the largest producer of silver in RF, increased the production volume of silver by 11%, to 8.8 troy ounces and gold production rose by 20%, to 136 th ounces, says company’s statement. However, the company decreased silver production by 7%, to 4.1 mn ounces and increased gold production by 32%, to 76 th ounces in 2Q 2007.