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Russian Stock News - July 29, 2008
Filed Under Trader’s view |
The beginning of new week has been rather controversial for Russia’s stock market. Last Friday RTS dropped significantly, backed by criticism of Vladimir Putin towards Mechel, as well as negative reports of Sberbank, triggering correction since the morning. Investors were more reasonable towards the situation and started purchasing the cheapened stock. Some positive movement has been demonstrated by stocks of Sberbank and Mechel, on par with oil & gas sector, which enjoyed support off increasing oil price. Throughout the day RTS almost achieved 1983 points, however, during the second half of the day, growth dissolved completely. This was likely caused by new claims of premier towards Mechel. To the end of session the fall of index has been accelerated, whilst indicator’s value appeared below prior closing.
RTS index value of Monday reduced -1.16% and stopped at 1928.74 points. The significant negative influence over the index has been formed through quotes of: LUKOIL (-2.73%), Norilsk Nickel (-8.37%) and Mechel (-32.04%). Opposite positive dynamics has been demonstrated by stocks of Gazprom (+0.7%), Rosneft (+2.56%) and NLMK (+5%).
RTS classic turnover of Monday has formed 62.8 mn USD, whereas the top turnover were achieved by stocks of Gazprom (14.9 mn USD), LUKOIL (13.0 mn USD) and Sberbank (11.8 mn USD).
In our opinion, Russian market currently holds negative issues mostly. Some partial negative backing could be further provided by foreign stock markets. The primary idea of the day may be manned by Mechel – yesterday Vladimir Putin had once more noted Mechel in its statements, leading to yet another fall of company’s ADR value at NYSE. Hence, today local stocks of the company are likely to fall again. Besides, the fire could also be fueled by the emergency occurring at one of Mechel’s mines lately. Therefore, we assume that Russian stock market may fall again today, losing significant -1.5-2%.
Russian Main Stock events
Even the fire against Mechel.
Explosion in mine: 9 people were injured in explosion at Lenin’s mine. An incident had occured in the well during the repair works 300 m below ground level. New criticisms statement of the Prime Minister: Mechel has exported raw materials through off-shore companies in Switzerland under the price, which is 4 times lower than domestic ones, said Vladimir Putin at presidium session.
LUKOIL purchased gas stations in Turkey.
LUKOIL EURASIA PETROL A.S., LUKOIL’s subsidiary, signed a purchase agreement for 100% of Akpet sales company’s stock, which assets include 693 gas stations in Turkey, says LUKOIL’s statement. The transaction sum was not announced, but according to RBK-Daily it forms 500 mn USD.
Acron cancels SPO.
Acron cancelled SPO due to negative market conditions, reports Interfax.
Other Stock news
Bereznikovsky Azot is not public any longer.
TGC-2 IAS 2007 report.