May
22
Russian Stock Market - May 21, 2008
Filed Under Trader’s view |
During Tuesday Russian stock market experienced a long-awaited correction downward. After 11 days of a non-stop growth RTS “stuck” at 2500 points, unable to pierce it on a run. Note that the external background was rather contrasted. European and US indices experienced a downslide, whilst oil prices have once more reached its all time highs – Tuesday’s Brent price exceeded 125 USD per barrel. However – this factor proved no serious support even to oil sector – the primary chips of the segment were downed as well.
RTS of the day lost 1.4% and closed at 2453.12 points. The most serious negative influence upon the indicator was sprayed by stock of LUKOIL (-3.78%), Gazprom (-1.23%) and Sberbank (-1.6%). On the other hand – index was supported by quotes of: Norilsk Nickel (+3.8%), Seventh Continent (+7%) and Raspadskaya (+2.02%).
RTS classic market turnover of Tuesday remained moderately high and formed 67.9 mn USD. Tuesday’s turnover leaders: Sberbank (17 mn USD), Gazprom (10.9 mn USD) and Norilsk Nickel (10.2 mn USD).
External background of Russian stock market continues to be negative. Yesterday brought publications of data on an unexpectedly high inflation in US, which provoked a wave of corrections throughout foreign grounds. US indices have lost -1-1.5% yesterday, morning dynamics by Asian markets was also rather negative -1-2%. We think that these factors will prove negative influence upon RTS dynamics of today, which may yet drop right after very opening of trades.
Main Stock events
MTS US GAAP report: stable growth.
MTS sales of January-March have increased up +37% under US GAAP report, to 2.4 bn USD. OIBDA rose +30% to 1.2 bn USD. Net income of MTS expanded by 36% versus 1Q 2007 to 610 mn USD.
Severstal offers to buy America’s Esmark for 17 USD per share.
Severstal has recently sent an application to Esmark board, offering to buy 100% of company’s stock. According to Severstal’s message – Russian company offers 17 USD apiece of Esmark.
Other Stock news
Ø Gazprom exchanges assets with Holland’s Gasunie.
Ø Sistema wants Centel.
Ø NWT board recommended to pay record dividends.
Ø MMK’s IAS weak results of 1Q 2008.
Ø TMK to up dividends of 2007 +8%.
Daily trader’s view - May 21, 2008 (Stock Review in PDF)