25 May 2004 12:15
Russian stock market slips to 620 points on RTS index Tuesday
MOSCOW. May 25 (Interfax) - The Russian stock market ended the trading day on May 25 at 620 points on the RTS index
due to 2.2%-4.9% price slippage for a majority of the most liquid stocks, a consequence of speculators taking profits
after a period of growth.
The RTS index lost 2.12% to 619.08 points, the composite ruble index S&P/RUX 2.52% to 752.05 points, the dollar
index 2.54% to 154.6 points and the MICEX stock index 3.94% to 559.03 points.
"Market immunity to the events surrounding Yukos will slowly
strengthen, there is already no panic selling like we were seeing
Investment department trader at MDM Bank Yevgeny Volkov said the continuing growth of oil prices, despite local
corrections, has already put investors on their guard - a negative for the stock markets. "No one needs such
expensive oil, because it puts the brakes to countries' economic development with rising costs for energy sources.
As things are, speculators playing 'short positions' after the previous few days' growth have gradually
begun to take profits," Volkov said.
Monetary liquidity currently leaves nothing good to wish for, Volkov said. Interbank currency market overnight rates
have gone down a bit (from yesterday's 20% to 13%-15% per year), but end-of-the-month money remains in short supply
as market players pay taxes, all of this prompting sales.
closer. On the RTS, the rate for UES common stock lost 4.9% to 27.11
cents per share, while its preferred stock picked up 15.2% to 26.5
Head of the analytical department at the company BrokerCreditService Maxim Shein said quotations on Tuesday fell
pretty evenly, speaking to the preeminence of technical factors over fundamental influences. "The court hearings of
the Tax Ministry suit against Yukos is already worrying investors less, as it is becoming clear that this will be a
'long tune'. Investors are also hoping for world oil prices to recoil," he said.
This, in the view of Uniastrum Bank trader Alex Khmelenko, is the
consequence of the announcement by CEO Anatoly Chubais that the
earlier," Volkov said. "If the RTS index goes to 620 points, then the next support level will be 610
points, lower than this I don't see the market next week. There could be a new surge upward to around 650 points in
the future," he added.
Among the liquid stocks, worthy of mention on Tuesday were the divergent-direction dynamics of Unified Energy System
of Russia (UES) common and preferred stock, the costs of which have drawn appreciably
cents.
company's preferred stock should be equal to the common at the upcoming OGK (wholesale generating company)
auctions.
"The preferred stock had begun to rise in price even the day before, and on Tuesday this process continued,
there is only a small way left to go to parity between the papers," Khmelenko told Interfax.
Stock in MMC Norilsk Nickel lost 3.7% on Tuesday, Lukoil 2.2%, Mosenergo 4.3%, Rostelecom 3.7%, Sberbank of Russia
3.1%, Sibneft 3.5%, Surgutneftegas 4.5% and Yukos 3.2% (to $9.05).
Aggregate trading on the RTS classic stock market came to $22.545 million on Tuesday, of that $8.973 million in
direct-bid deals, while turnover on the MICEX stock section reached 18.772 billion rubles.
On the St. Petersburg Stock Exchange's Gazprom stock section, there was also a mild recoil in quotations, as the
evening's announcement that the Gazprom board of directors was recommending dividends for 2003 of 69 kopecks per
share did not have an effect on the disposition of market forces.
Stock in the concern was down 3.2% in closed trading to 55.7 rubles per share, with 19.526 million shares trading
hands in all. [RU EUROPE EEU ASIA EMRG STX MET ENR ELG TEL E BNK INSI] cf
[Interfax] |
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