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Russian Stock News - June 30, 2008
Filed Under Trader’s view |
Following the world’s stock markets, Russian market opened at a downward gap last Friday. Towards noon RTS dropped to the level of early May, sloping below 2300 points. However, the positive support by statistics of US population income and expense provoked another wave of optimism. As a result – the morning’s shortcomings were compensated. Aside of this – the stocks of oil & gas sector were pushed up by the price of oil, achieving yet another highest value at the back of failing dollar and fears regarding decrease of extraction by Libya. Among corporate news we point out that a range of companies have conducted their annual meetings of shareholders. In particular – AvtoVAZ announced its plans on establishment of a joint automobile parts holding with KAMAZ and Rostechnologii State Corp. We think that management’s announced plans of Friday could support the stocks of the automobile giant today.
RTS rose +0.43% last Friday, closing at 2138.61 points. The index was supported by stocks of Rosneft (+4.02%), LUKOIL (+2.07%) and Gazprom (+1.04%). The banking sector seemed rather week, as quotes of Sberbank (-2.42%) and VTB (-2.51%) went down negative.
Friday’s turnover of classic market formed 62.3 mn USD. The top turnover volumes were achieved by stocks of LUKOIL (16.2 mn USD), Sberbank (14.3 mn USD) and Gazprom (8.7 mn USD).
We think that today RTS would move in a side trend, following the dynamics of foreign indices. Do note though, the dynamics of US indices was weakly negative, whereas Asia’s indices remained virtually unchanged. However, the over-bought nature of Russian market could bring investors to new wave of purchases.
Main Stock events
Gazprom conducted shareholders’ meeting.
The shareholders of Gazprom have chosen a new board of directors, which forms 11 people, during last Friday’s meeting of shareholders in Moscow, reported the journalist of Agency of Gas Information from the concern’s office, where the meeting was held.
Other Stock news
WGC-2 and WGC-6 plan to conduct second offerings in Gazpom’s favor.
WGC-2 and WGC-6 can conduct second offerings in Gazprom’s interest to cover the deficit of investment program, said Denis Fedotov, the representative of gas company.
AvtoVAZ keeps its finger on the pulse.
During the shareholders’ meeting, held on June 27th of 2008, Sergey Chemezov, the chairman of the board of Gazprom and chief manager of Rostechnologii State Corp. and Boris Aleshin, the president of AvtoVAZ have announced the plans concerning the creation of a new holding оf automobile parts production.
AvtoVAZ: big plans of market conquest.
AvtoVAZ will start the production of five and seven seat station wagons and also commercial cars on the base of Renault from 2010, said company’s statement, citing Boris Aleshin.
Kirovsky Plant: blame the minors.
Kirovsky Plant’s shareholders have refused the proposal by board on increasing the number of announced stocks by 9.1 mn to 20 mn stocks, at Friday’s annual meeting.
Russian Stock Market Daily review - June 30, 2008 (PDF)