Aug
27
Russian Stock Market
Filed Under Trader’s view |
On Tuesday, trades at Russian stock market have started with a significant fall of main liquid securities. A fall of RTS code formed 3%. Securities of banking and oil & gas sector provided the most destructive effect on the code. At noon, Sberbank’s stocks decreased by more than 6%, a fall of Gazprom’s and LUKOIL’s shares totaled 4.5 and 4.2% respectively. The fall occurred due to a negative ambient background: USA indices decreased to the lowest level over the month. Negative financial report of Columbian Bank has a negative influence on the financial sector. Moreover, Credit Suisse has reported about possible weak 3Q 2008 results of American International Group, an insurance company. An additional negative effect was caused by decreased forecasts of Stanley under S&P late this year. Materials sector did not boost Russian stock market as well. At the back of strengthen USD exchange rate, oil prices decreased by 2 USD. During the afternoon, the market has continued falling, on the base of news, concerning Russia’s decision to recognize political independence of South Ossetia and Abkhazia and a range of statements of relationships between Russia and NATO. However, before the trades were over, the market has slightly grown. It was supported by increased of oil prices in comparison with the morning. Moreover, Credit Suisse confirmed the forecasts of RTS code at late 2008 of 2600 points.
According to the results of the day, RTS code decreased by 4.16% and formed 1579.12 points. Securities of Sberbank (-9.53%), Gazprom (-3.09%) and Uralkali have a negative effect on RTS.
Classic market’s turnover of RTS has formed 33.6 mn USD. The stocks of Gazprom (8.97 mn USD), Sberbank (7.14 mn USD) and LUKOIL (3.65 mn USD) have reached the highest turnovers.
Yesterday RTS code has decreased to the lowest short-term level. We think that the code can increase after 3 days of permanent falling. Among the boosting factors can be oil prices, increased according to Tuesday’s results by 0.5 USD. The dynamics of foreign indices were mixed, but close to positive. We expect that the trades will start with positive motion, but taking into account political issues and high investment risks in Russian economy, a growth can be slight (about 1%) with low volumes of market turnovers.
Main Russian Stock Market events
NLMK’s net income increased by 44% under US GAAP 1H 2008 report.
According to US GAAP 1H 2008 financial report, NLMK’s net income increased by 43.8%, to 1.531 bn USD, says company’s report. Company’s revenue added 63% and reached 5.884 bn USD, a growth of EBITDA formed 47% (2.313 bn USD).
IRC increase price of unlimited tariff?
Svyazinvest plans to increase prices of unlimited tariff of local communication service to the highest, confirmed by FTS’ value, announced Oleg Mikhailov, the manager of information development department to RBK.
Other Russian Stock Market news
Vimpelcom’s financial result forecasts.
On August 28th, Vimpelcom plans to publish its US GAAP 2Q & 1H 2008 financial report. Before its publishing, we would to present our estimation of it.
Russian Stock Market Review (PDF)