Aug
12
Russian Stock News Review
Filed Under Trader’s view |
The start of trades throughout Russian stock grounds was rather controversial, due to uncertainties over Georgia-Ossetia conflict zone. However, RF’s president on completion of a peacekeeping operation in Caucasus region, provoking a significant growth of primary range of liquid stocks. Pushing up the quotes of oil & gas companies over +3%, in despite the fact of oil prices dropping to the level of late April – early May. More to that – the sound report by MTS of 2Q 2008 (US GAAP) did its part too. Backed by this the quotes of the company expanded by +4.46%.
RTS index of Tuesday has added +3.49% and stopped at 1803.82 points. Some significant positive support for the index has been provided by Sberbank (+6.49%), Gazprom (+4.59%) and LUKOIL (+3.56%). The stocks of Rostelecom (-1.09%) were ones to make a negative impact.
Classic market’s turnover of RTS has formed 46.3 mn USD. The top turnovers of the day were achieved by stocks of Gazprom (16.4 mn USD), Sberbank (11.1 mn USD) and LUKOIL (7.5 mn USD).
The fundamental underestimation of Russian stocks and finally – the peace brought upon South Ossetia’s conflict gives hopes to investors for further growth of market. The negative closing of foreign stock indices, in our opinion, will not make a serious hit upon the Russian stock market. At this stage the “peaceful” growth of index seems more actual, rather than influence of external factors.
Main Russian Stock events
MTS: great 2Q 2008 results.
According to financial results under US GAAP 2Q 2008 report, MTS’ revenue increased by 34% vs 2Q 2007 results and formed 2.6 bn USD. OIBDA formed 1.3 bn USD, 32% higher than the results of the prior year. Company’s net income reached 659 mn USD (+30% growth).