TMCnet News
Most blue chips post gains Monday(Interfax News Agency Via Thomson Dialog NewsEdge) MOSCOW. Aug 21 (Interfax) - Most blue chips posted gains on the Russian stock market Monday on growing oil prices and amid good trends on world stock exchanges. Benchmark stocks grew 1%-3.3% on the Russian Trading System (RTS) and the Moscow Interbank Currency Exchange (MICEX). The RTS index grew 1.47% to 1618.59 and the MICEX 1.87% to 1430.93. Oil prices started growing after Iran said that it is not planning to stop its uranium enrichment program. Moreover, the start ofinternational sanctions against Iran will shut off Iranian crude exports to the world market, which will create an oil shortage. Growing oil prices caused a negative trend on U.S. markets in early trading because of fears that economic growth will slow, which hasslightly cooled off the bullish mood. The worst performers Monday were Rosneft, which dropped 0.7% on the MICEX, and Unified Energy System (UES) (RTS: EESR), which slipped 0.3% to 19.66 rubles. UES sales started last Friday on a Deloitte & Touche analysis of the company. It estimated one UES common share at 16.41 rubles as of April 1, while its real market value was approximately 20 rubles.Deloitte & Touche estimated the value of one UES preferred shares at 14.54 rubles, while they were trading at more than 16 rubles a share in early April. If the UES board of directors approves these prices, then the power company will buy shares at those prices from shareholders who voted at an EGM at the end of November of last year against reorganizing the power company or who did not take part in the vote, said AlexanderPotavin of NetTrader.ru. "Despite the fact that UES shares fell after the announcement, it's not worth over dramatizing the situation, since there are too many questions about these estimates. However, short-term news could push UES shares a bit lower," he said. The UES estimate news is aimed at investors and not speculators, said Alexander Baranov, asset manager at Nord Capital. "The estimate of the UES shares is an offer for investors amid any cataclysms," he told Interfax. "If all world markets collapse, UES shareholders will have a guaranteed possibility to sell shares at the estimated price to the company itself and this right is free. The panic sale of UES shares on the Deloitte & Touche news doesn't have a logical explanation and several speculators are simply confused," he said. "Oil only dropped to $70 a barrel, then rebounded and is now trading around $72 a barrel," Baranov said. "The mood there and onemerging markets is positive. The increase in interest rates by the Bank of China last Friday has been dealt with and the mood is positive in general, expect for us. The Russian market doesn't want to post gains and is slowing down because of some players. However, I think we will see a rebound soon and the market should grow this week," he said. "Investors had time over the weekend over the weekend to understand that there aren't any strong reasons for a drop, therefore prices began to gradually return to their previous levels on Monday," said Dmitry Royenko, head of investment management at Olma. "The Russian market is also growing because of the situation on world commodity markets where oil prices are continuing to grow. However, the growth for blue chips has not been accompanied by high trading," he said. All factors still point to a growth in the capitalization of Russian companies, said Alexander Razuvayev of Megatrustoil. "The UES purchase price in Russia very rarely makes minority shareholders happy and reform in the sector is entering the decisive stage," he said. "Electricity assets are more attractive on our market and the main recommendations are for UES and OGK-5. There is also a high probability that Rosneft will appear on the MSCI index in three months. Together with Gazprom, these stocks will be the most attractive blue chips until the end of the year. We still think the RTS index could hit the 2000 mark by the end of the year," he said. Andrei Vernikov of Aton Line was more skeptical said that the news is generally bad and one should not expect stability on financialmarkets anytime soon. "I think the RTS index will be tested at the 1570 mark this week. Despite the fact that prices grow in Monday trading because of local shares being oversold, market trends over the last week show that bears are gradually trying to bid the market down. The market could drop to its support zone of 1560-1570 in a couple of days," he said. Lukoil (RTS: LKOH) grew 3.1% on the MICEX, Mosenergo (RTS: MSNG) was up 3.3%, Rostelecom (RTS: RTKM) rose by 1.9%, Sberbank (RTS: SBER) - 2.1%, MMC Norilsk Nickel (RTS: GMKN) - 1%, Tatneft (RTS: TATN) - 1.3%, Gazprom (RTS: GAZP) - 2.6% and Gazprom Neft increased 2.6%. Among second-tier shares, Aeroflot (RTS: AFLT) jumped 7.9% and has won back its drop last Friday. It is likely that bulls are resuming buys after a recent idea from the Economic Development and Trade Ministry to exclude the airline from a list of strategic enterprises, which raises the likelihood that Russia's flagship carrier will soon be privatized. Megionneftegaz jumped 11.1%, Avtovaz (RTS: AVAZ) rose 5.7% and Mobile TeleSystems (RTS: MTSS) (MTS) rose 4.8%. RTS classic market trading was $29.32 million, and trading volume on the MICEX stock section was 44.36 billion rubles, of which 21.544 billion rubles was for Gazprom. RTS$#&: AFLT, AVAZ, EESR, GAZP, GMKN, LKOH, MSNG, MTSS, RTKM, SBER, TATN rm Copyright 2006 Interfax News Agency. Source: Financial Times Information Limited. |