Jul
28
On Friday, the stock market has faced difficulties, which it never seen before. However, this situation was started on Thursday’s evening, when Vladimir Putin, the Prime Minister has criticized “Mechel” and Igor Zyuzin, its major shareholder. Mechel’s quotes at NYSE decreased by 30%. The same situation was at the Russian stock market and the fall of Mechel’s quotes formed 30%. Putin’s statement triggered sale of all sectors and from our point of view, can be characterized as emotionally colored. The stocks of ferrous industry and some coal companies have a negative effect on RTS. Sberbank has also added some fuel to the fire, the established financial report was more unsound, than it was forecasted, which led to additional sales of Sberbank’s shares.
RTS has decreased by -5.58% and formed 1951.29 points on Friday. The negative effect on RTS have the shares of Mechel, Sberbank (-7.41%), LUKOIL (-4.85%) and Rosneft (-5.8%). Weak support was provided by the stocks of HydroWGC (+1.16%) and Seventh Continent (+1.15%).
A turnover at RTS classic market formed 77.2 mn USD. The highest transaction volumes were provided by the shares of Sberbank (29.3 mn USD), LUKOIL (8.7 mn USD) and Gazprom (5.8 mn USD).
Russian stock market has significantly fallen in the past week. RTS decreased by 8.6%, and since historical maximum, which was achieved on May 19th, the fall totaled 22%. We do not exclude the market corrections in the upwards direction during the week. Moreover, the market will have to recover after Vladimir Putin’s statements on Friday. We also think that RTS could reach 2000-2050 during this week.
Main Stock news
KAMAZ + Daimler = ?
Troika Dialog, the investment company and KAMAZ’ management carries on negotiations with Daimler, concerning 42% sale of the largest truck producer in Russia.
Other Stock news
TMK decreased forecasted 2008 growth of production from 7% to 2.
TMK decreased the forecasted growth of production for 2008 by 2%. The company plans to produce about 3.1 mn t of pipe products (excluding the production of assets, which were purchased in USA). Company’s previous forecasts totaled 7% growth. The company hopes to restore the growth in 4Q 2008, by launch of new capacities, after a decrease of pipe production by 5% in 1H 2008.