04 February 2004 02:47
Stock market gains stop at midday
Unified Energy System shares led the market up, climbing 2.3% to
31.55 cents. As of 2:00 p.m., Moscow time, on the RTS, Yukos was up
MOSCOW. Feb 4 (Interfax) - Stock market gains, encouraged by the demerger decision from Sibneft and Yukos, came to a
stop at midday on Wednesday as speculators began to take profits.
1.8% to $11.5.
Other blue chips went up 0.3% to 1.9%.
Investors are optimistic about Yukos shares because they hope that at least part of the conflict that surrounds the
company will be settled and are buying up the shares at a good price.
However, by midday Wednesday, Yukos shares were a little overheated and a small correction followed.
The demerger news is very important because going to court with Sibneft would have threatened Yukos with a loss of
assets, analysts at Bank of Moscow said.
"Now the threat has been lifted and there are already comments that now that Menatep Group has given in to
Sibneft shareholders, the government will yield, in essence, meaning an end to the conflict around the company. How true
such a proposal is will become clear on Thursday when the court pronounces its verdict in the case of [former Yukos
Moscow chief] Vasily Shakhnovsky, who is accused of tax evasion," the analysts said. If Shakhnovsky is cleared or
given a suspended sentence, investors will be able to think about the 30% discount at which Yukos is being traded, if
political risks are not taken into account.
There is no guarantee that Yukos will be left alone after its divorce from Sibneft, said Sergei Suverov of Zenit
bank. "The end aim of the authorities is a change to more loyal owners : and until this happens, attacks against
the company will probably continue," he said.
In the long-term, Sibneft may have more to gain because it can now talk about selling assets to a foreign investor,
for example Total of France, he said.
Big gains for Yukos are not the only condition required to break the lateral trend and trigger growth, said analysts
from Veles Capital. There is a considerable amount of emotion involved in the demand for Yukos, so a downward correction
would be quite logical. As for the rest of the market, prices are likely to move up and down in the short term.
On the RTS, prices went up 1.2% for Norilsk Nickel, 1.8% for Lukoil, 0.9% for Mosenergo, 1.1% for Surgutneftegaz,
0.3% for Sibneft, 0.8% for Tatneft, 1.9% for Sberbank, and 1.8% for Rostelecom.
Trading volume was at $16.154 million on the RTS (including $6.182 million in direct deals), and 9.536 billion rubles
on the MICEX.
The RTS index went up 1.25% to 623.43 points.
The MICEX composite was up 1.32% to 558.31.
Gazprom topped 44 rubles as the market continues to make the most of company board member Boris Fyodorov's
announcement that market liberalization would take place before the end of the year.
Gazprom shares on the St. Petersburg exchange, traded through RTS terminals, were up 1.6% at 44.62 rubles in volume
of 18.808 million shares.
The S&P/RUX composite ruble index went up 1.73% to 719.29. The index in dollars added 1.39% to 149.79.
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