03 June 2004 12:46
RTS tops 570 points, demand for UES stock rises
MOSCOW. June 3 (Interfax) - Trading on the Russian stock market took place amid moderate growth for a majority of
liquid stocks mainly in the first part of the day, though real demand for blue chips slipped noticeably.
Quotations for liquid stocks rose 0.4%-2.7% on the Russian Trading System, the RTS index moving above the 570-point
mark 0.42% to 570.61 points.
The most significant price gain Thursday was for Yukos stock (up 4.1% to $7.55 per share), which was earlier the
locomotive down for the entire market, as well as Unified Energy System of Russia (UES), which was up 4.7% to 26.8
cents. Demand for UES stock particularly rose toward the evening after the announcement that the holding's board of
directors will consider the creation and sale of wholesale generating companies (gencos) and the creation of territorial
generating companies at its June 25 meeting.
Common stock in UES cost around 7.86 rubles by Thursday evening, 4.6% higher than Wednesday.
Traders said the technical correction on Thursday after a slide at the start of the week has already virtually run
its course, moreover so as the external factors do not correspond with continued stable demand: stock indices in the
United States are slipping, and world oil prices remain at record highs, putting the brakes to world economic
growth.
The market lacks Wednesday's optimism, although speculators have plenty of ruble supply again, said Alexei
Nikogosov of Veles Capital. "There is no foreign support for Russian shares. The news backdrop is relatively
neutral and the market reacted sluggishly to news that Tax Ministry and Interior Ministry representatives had seized
documents at two Yukos offices," he said. "OPEC's expected decision to raise oil output quotas 11% a day,
which according to forecasts should lower prices by $6 to $8 per barrel, is also so far having little impact on the
market. In any case, the oil price level written into the Russian budget will be lower than it is now -there is a crude
surplus on the market," he said. The market is trying to stabilize at current levels, but there are no assurances
that the decline has stopped, Ivan Dorofeev of Olimpiyskiy bank said. "U.S. unemployment figures will be published
this week and may have an impact on the American market and our market and on the Federal Reserve's decision about
interest rates, which is expected at the end of June. However, it seems investors are ready for rates to go up and this
event is already reflected in prices," he said. Interest rates are likely to be raised by a quarter or half a
percent, Nikogosov said. "The main thing is how aggressively will rates be upped in the future. If the Fed is going
to up [interest rates] at each session, a negative impact on the stock market will not be far behind," he said.
"It looks like we have not seen rock bottom just yet and there is a great likelihood that shares will fall in the
near future and support levels will be at 550, 535 and 500 on the RTS index," he said.
Lukoil shares gained 0.4% on the RTS, Mosenergo 2.1%, Rostelecom 0.7%, Sberbank of Russia 1.8% and Sibneft 2.7%.
Surgutneftegas dipped 0.9%, Tatneft 1.6% and MMC Norilsk Nickel 2.7%.
Aggregate turnover on the classic RTS market Thursday came to $18.833 million, $10.588 million of that in direct-bid
dealing, while turnover on the MICEX stock section topped 16.6 billion rubles.
Gazprom stock ended the day unchanged at 55.68 rubles per share on the St. Petersburg Stock Exchange, although it
slipped 3% during the day to 54 rubles. Trading topped 25.684 million shares.
"Trading with Gazprom shares has considerably increased over the past few days and the shares are showing high
volatility," Nikogosov said. "It looks like the concern's shares are the only ones left where investors
prefer not to open short positions, but instead to actually buy," he added. The S&P/RUX composite ruble index
rose 0.58% to 709.41, and the index in dollars added 0.42% to 145.54. MICEX composite edged up 0.38% to 535.89. [RU ASIA
EUROPE EEU EMRG STX MET ENR ELG TEL E BNK INSI]
[Interfax] |
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