04 June 2004 09:46
MOST STOCKS END THE WEEK DOWN
MOSCOW. June 4 (Interfax) - An upswing noted on the Russian stock market on Friday morning against a backdrop of
favorable domestic news did not live up to the hopes of the bulls: in the second half of the day a new wave of sales
began, caused by rumors of a possible bank crisis in Russia, and the week ended with price decline for most blue
chips.
Blue chips fell 0.2%-1.9% on the RTS, and the largest decline was in MMC Norilsk Nickel shares, which fell 6.1% to
$47.5 per share. This company's shares were sold due to unimpressive figures in the company's report for last
year. The company's shares have lost about 25% in value over the past two weeks.
The exception on the market was Unified Energy System of Russia, with common stock up 1.2% to 26.45 cents per share
and preferreds - up 3.6% to 23 cents.
UES rallied after Deputy Economic Development and Trade Minister Andrei Sharonov said the economy ministry had
drafted and planned to introduce new legislation regulating large share purchases in a bid to protect minority
shareholders' rights.
In addition, the government approved the economy ministry's proposals for selling wholesale generating companies
at special cash auctions.
Antanta Capital trader Alexander Pankov told Interfax that UES could hit 30 cents a share before long if the auction
rules state shares as well as cash can be used at the special auctions. "With this idea the market grew, taking all
other instruments with it," Pankov said.
Meanwhile, nervousness on the market due to worries about a possible banking crisis, caused by rumors about alleged
blacklist banks at which searches and document seizures are planned, caused a drop in quotes across the board by Friday
evening. The halt in the activities of two credit organizations - Sodbusinessbank and CreditTrust - increased the
concerns of market participants about a problem at other banks also, and brought to mind the bitter experience of
Yukos
By the close of trading the RTS quoted Lukoil down 1.3%, Mosenergo
- down 0.2%, Rostelecom - down 1%, Sberbank - 0.6%, Sibneft -1.9%,
Surgutneftegas - 1.6%, Tatneft - 0.8% and Yukos - 0.9% to $7.48 per
On the whole, the market still has an air of uncertainty about it, and it is unclear which way prices will go.
"The market needs to stand a little, and the overriding trend at present is a lateral one," said Uniastrum
trader Alexei Khmelenko. "I think the market needs to fall once more before it grows," he said.
"There's less likelihood the market will grow than there is of it declining next week," Pankov
said.
share.
Classical trading volume on the RTS was $32.727 million, including $14.89 million in direct transactions. MICEX
volume was 16.431 billion rubles.
Gazprom shares traded on the St. Petersburg Stock Exchange fell 0.3% to 55.5 rubles, although they reached 56.3
rubles (+1.1%) during trading, with 23.57 million shares changing hands.
The composite S&P/RUX index fell 0.68% to 704.59 in rubles and 0.8% to 144.38 in dollars.
The RTS index fell 0.55% to 567.49 points and the MICEX stock index fell 2.54% to 522.29.
[Interfax] |
RUSSIA IN FACTS
