28 April 2004 05:49
Stock market gains as speculators close short positions
MOSCOW. April 28 (Interfax) - After some appreciable slippage the day before, the Russian stock market climbed 2.11%
to 678.26 points on the RTS index, a consequence of technical correction and speculators closing out short
positions.
By 2:00 p.m. Moscow time, blue chips on the RTS had gained 0.7%-4.8% with oil company stocks leading the way amid
rising world oil prices. The composite ruble index S&P/RUX had risen to 1.44% to 821.89 points, the dollar index
1.91% to 169.67 points and the MICEX stock index 0.51% to 610.62 points.
"Support is good for oil stocks at present, though because of very
high ruble value at the end of the month [the overnight rate on the
Uniastrum bank trader Alexei Khmelenko told Interfax that many speculators are opting to close out short positions
this week, so as not to be holding them over the long 1st-of-May holiday weekend.
week and in the first half of May. The next resistance level for the
market is the 705-point mark on the RTS index, and the next milepost
interbank loan market reached 30% per year on Wednesday], serious upward movement before May should not be
expected," Khmelenko said.
In the coming two or three months, the market will most likely see prices rise-the ruble liquidity situation getting
back to normal in May- and the "cut-off season" will arrive as several major companies close shareholder
registers [Sberbank on May 1, Lukoil and Gazprom on May 7 and Mosenergo on May 13]," he said.
Senior IK BELES Capital trader Alexei Nikogosov said the present quotation jump could be termed a technical
correction aver the slide of the last two and a half weeks. "With register-closing dates approaching buying will
maintain, and against this backdrop we might gain a bit this
[will be] 720-735 points. I think that we could test these marks over the coming weeks," he said.
It is still too early to talk about changes to the ascendant trend on the market for over a year, it is hard to break
the trend so quickly, even with Yukos's fly in the ointment," Nikogosov said.
Zenit Bank analyst Sergei Suverov thinks this could be linked to
the Mosenergo management decision to not buy up 10% of its stock, as
"What direction the market takes in May will depend not only on ruble liquidity, but also on the U.S. Federal
Reserve's rates position, which has a serious impact on the disposition of forces on the currency market. The
dollar has been gaining of late, and if this trend continues the movement of funds from the stock market to the currency
[market] will continue, having a negative effect on stock quotations," he added.
RAO Unified Energy System of Russia (UES) stock had gained 0.8% on the RTS by mid-session, Lukoil 3.2%, Rostelecom
0.9%, Surgutneftegas 3.3%, Sibneft 4.8%, Tatneft 0.7%, Sberbank of Russia 2% and Yukos 1.6% (to $11.66 per share).
their June 28 meeting endorse the decision to split up the company,
which will be a turning point in the process of its reformation,"
Mosenergo stock looks weaker against the market (down 0.8%), and there has been a wave of Western selling, including
company ADR.
well as the board of directors confirmation of an acquisition price 30% below market for stock from shareholders
unsatisfied with the restructuring.
"All this is negative short-term news for the capitalization of the capital's energy system, and it is
obvious that investors will opt no to sell stock for six cents per share. The Mosenergo shareholders will at
Suverov said.
Aggregate trading on the RTS classic stock market had by 2:00 p.m. Moscow time reached $10.478 million, of which
$4.24 million involved direct-bid deals, while turnover on the MICEX stock section reached 7.23 billion rubles.
Gazprom stock gained 1% on the St. Petersburg stock exchange on Wednesday, trading at 60.48 rubles/share by
mid-session and with over 15.176 million shares having changed hands. [RU EUROPE EEU ASIA EMRG STX MET ENR ELG TEL E BNK
INSI] cf
[Interfax] |
RUSSIA IN FACTS
