Aug
7
Russian stock market events - August 7, 2008
Filed Under Trader’s view |
Wednesday’s trades were notably live throughout Russia’s stock market, in just one hour market boosted +1.5% to RTS index. This hike could have been supported by expansion of primary foreign markets. Soon however, market “jammed”, as RTS dropped below 1800 points. Although – market got back up towards day’s end. Among top negative issues, we would like to point out the following: first of all – Federal Anti-Monopoly Service (FAS) announced that almost all of large oil companies have failed to provide data on jet fuel price upgrade. This news can be taken negatively at the back of latter events related to Mechel, investors may be afraid that oil industry will be controlled even harshly on upgrade of domestic prices of oil products, possibly applying fines, and even forced cuts of prices, which on its part will bring down the effectiveness of the companies. Norilsk Nickel stocks “suffered” the most yesterday. Wednesday brought news of Interros receiving no offer from Oneksim group on sale of a stake in Norilsk Nickel. Bringing negative movements within Norilsk Nickel, because market’s hopes for peaceful settlement of shareholders’ conflict are even farther away now.
RTS of the day rose +0.14% and formed 1814.6 points. The top support of index has been formed through stocks of LUKOIL (+2.55%), Sberbank (+1.51%) and Rosneft (+1.52%). The utmost negative influence upon the index was provided by stocks of Norilsk Nickel (-3.24%), Severstal (-1.71%) and NVMP (-17.81%).
Wednesday’s RTS’ classic market turnover has formed 62 mn USD. Largest volumes were achieved through stocks of LUKOIL (9.4 mn USD), Rosneft (9 mn USD) and Gazprom (8.6 mn USD).
We think that Russian market of Thursday may continue its growth. As yesterday’s reported Freddie Mac failed to bring down US stock market, and DJIA added +0.35%. Aside of this – we cannot overlook thee significant underestimation of most of Russian stocks.
Main Russian Stock events
S&P decreased credit rate for TNK-BP.
Standard & Poor’s, international rating agency decreased TNK-BP’s long-term corporate credit rating and unsecured priority rating from “BB+” to “BB”, says a press release of the agency. Agency’s rating forecast for TNK-BP is “negative”.