Sep
23
The dynamics of RTS was mixed, but still in the green. The change of primary range of liquid shares formed -3% to +3%. On one hand – the external factors have supported the trades, as primary foreign indices closed down upwards. The western market on its part was supported by new plan of US finance ministry – to buy-out the overdue mortgage bonds. Besides of that Morgan Stanley and Goldman Sachs could soon change their status from investment banks into bank holdings, allowing them to get cash from the Central Bank if they need it, also reducing risks on deposits in exchange for super-incomes. Aside of external factors Russian market was propelled by RF finance ministry’s ban on short sales, plus measures taken to support the failing liquidity. The undermined trust to the stock market however is hard to restore. After a hike this Friday – some investors preferred to fix their income on LUKOIL this Monday, which added almost +30%, Sberbank and Gazprom added +40% and +35% respectively, sharing the same fate.
Tuesday’s RTS growth was light and formed +1.05% to 1309.5 points. Some sounds help to the index was provided by stocks of NOVATEK (+21.7%), Uralkali (+17.9%) and Tatneft (+6.2%). The negative dynamics slapped quotes of: LUKOIL (-3%), Sberbank (-2.27%) and Gazprom (-1.19%).
Classic turnover of RTS formed 23.2 mn USD yesterday. More than a half of all deals were made on shares of Sberbank (10.5 mn USD) and Gazprom (5.0 mn USD). The top three was also manned by stocks of Norilsk Nickel (1.8 mn USD).
We think that today the market would be rather volatile. The trades opening is likely to be held in a negative stream, due to bad dynamics coming from US stock indices. The support for the market could possible be brought by expanded oil price: Brent added +6% to 104 USD yesterday.
Main Russian Stock events
Mechel to build 2 ferronickel producing plants.
Mechel plans to build 2 ferronickel producing plans with total output of 40 th tons, said Alexey Ivanushkin, chief manager of “Mechel-Ferroalloys”. According to him, ferronickel producing plant will be built in Kazakhstan near Shevchenko mine. The second plant will be located in Orenburg region.
Other Russian Stock news
Russian Railways delays subsidiaries IPOs.
Russian Railways have confirmed the withdrawal from IPO of its subsidiary Transcontainer, previously planned to be held this Fall.
Daily review - September 23, 2008 (PDF Stock Market)