07 June 2004 07:40
Liquidity shortage holds back stock market gains
As of 2:00 p.m., Moscow time, on the RTS, blue chips were up 1.1%
to 3.4% thanks to foreign demand. Norilsk Nickel led the market up,
MOSCOW. June 7 (Interfax) - A liquidity deficit in the banking sector due to fears of a possible crisis held back
gains on the Russian stock and Eurobonds markets Monday.
climbing 5.7% to $50.2.
despite OPEC's 2 million barrels a day quota hike (analysts do not
expect prices to drop below $35 per barrel in the near future, but
International stock indexes are growing and oil prices remain high,
increased interbank loan market rates on the domestic market made for sluggish gains, traders said.
The market saw most of its gains in the morning and then the market entered a sideways trend with new ideas for
further movement lacking for now, said Yevgeny Volkov of MDM Bank.
"Every day there are new rumors about a possible banking crisis, and this is taking its toll on investor mood.
Some banks have started closing limits on each other, which is having a negative impact on monetary liquidity and
interbank loan market rates are climbing. Even a statement from the Central Bank saying that if there were a problem
with liquidity, the monetary authorities would refinance the market, and an Interior Ministry statement refuting the
existence of any black lists of banks, suspected of financial crimes, have not completely calmed down investors. As
usual the market tends to react the opposite way to all official statements about a lack of problems in the banking
sector," he said.
Norilsk Nickel shares were locally oversold on Friday due to fears that the publication of information on nickel and
copper reserves at the company's main deposits would not justify forecasts, Volkov said. "The market over
emotionally reacted to the release of data on Norilsk Nickel reserves, but after they actually appeared the situation
began to improve and share quotes climbed," he said.
Considering current production volumes of about 240,000 tonnes of nickel a year, Norilsk Nickel is ensured proven
reserves for about 27 years, which is a rather high indicator by international standards, Bank of Moscow analysts
said.
On the RTS, prices were up 3.4% for Unified Energy System, 1.5% for Lukoil, 1.7% for Rostelecom, 1.1% for Sberbank,
1.2% for Sibneft, 2.6% for Surgutneftegas, and 3.2% for Yukos (to $7.72). Mosenergo slid 0.2%.
The RTS stock index went up 0.94% to 572.85 points.
The MICEX composite rose 1.87% to 532.06.
Trading volume was at $15.483 million on the RTS (including $9.654 million in direct deals), and 5.598 billion rubles
on the MICEX.
Gazprom shares on the St. Petersburg were up 0.4% at 55.7 rubles in volume of over 6.285 million shares.
The S&P/RUX composite ruble index climbed 0.97% to 711.43, and the index in dollars added 1.04% to 145.88.
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[Interfax] |
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