Jul
17
Wednesday’s dynamics of the stock market were variously-directed. Since the very morning external factors went at work, thanks to which market opened up soundly in the start. Prior to the publication of US statistics, however, the market moved down sharply, following panic of US depositors, who try to get their money off America’s seventh largest bank – IndyMac. Besides of that – the negative pressure upon the oil & gas sector was brought by the dropped oil price. Nevertheless, throughout the second half of day the situation has changed considerably. This was supported by factors such as publication of strong corporate report and growth of US indices futures. US also published its industrial output data, which exceeded expectations.
Towards the end of the trading session index compensated for the day’s fall and closed at +0.06% above closing level and totaled 2175.46 points. The stocks of Norilsk Nickel (+5.07%) felt themselves well, on par with Sberbank (+1.29%) and VTB (+1.16%). Then again, the opposite side of the barricades was manned by stocks of Uralkali (-1.42%), Tatneft (-2.11%) and preferred stocks of Surgutneftegas (-4.3%).
Classic market’s turnover of RTS has formed 38 mn USD yesterday. Some of the highest turnovers have been achieved by stocks of LUKOIL (10.8 mn USD), Norilsk Nickel (7.5 mn SUD) and Gazprom (5.3 mn USD).
Today’s Russian stock market could be supported by external positive factors. Yesterday DJ and Nasdaq rose +2.52% and +3.12% respectively. America’s indices owe their dynamics to oil price, which dropped almost -3% yesterday. Markets may open up at an upward gap. However, today we should see the publication of US realty market, which is expected to be quite negative. All of this is meant to determine the further dynamics of Russian market today.
Main Stock events
Rostelecom to diversify itself.
Rostelecom’s board of directors confirmed the main trends of development strategy over years 2008-2012, said Konstantin Solodukhin, the chief manager of the company, at the press-conference on Wednesday. The key trend of the strategy appears to be the possibility of Rostelecom to become the only operator of Svyazinvest, providing the services to federal corporate clients, enter to broadband market and conquer the foreign markets.
Other Russian Stock news
Mechel’s preferred shares target at 50.5-60.5 USD per share and GDR of company.
Mechel Group announced its price range for preferred shares, states the company. The target range on preferred shares and GDR of Mechel is set at 50.5-60.5 USD apiece.