10 June 2004 05:23
Stock prices tumble in early trading
MOSCOW. June 10 (Interfax) - Stock prices tumbled Thursday morning due to decline on international markets, a drop in
oil prices, weak demand for ADRs and amid anticipated bankruptcy at Yukos, but the slide stopped toward midday and the
market took a wait-and-see attitude.
As of 2:00 p.m., Moscow time, on the RTS, quotes were down 1% to 6.3% in light trading, which shows that selling was
not aggressive.
The gains seen over the past two years was cancelled out on Thursday
morning and traders say the market may again fall to around 550-560
Simon Kukes told the Wall Street Journal that he felt pessimistic
and did not rule out the company's bankruptcy, if that is what the
Yukos shares tumbled 6.2% to $7.55 in reaction to the company's official acknowledgement that the share issue it
made for the failed Yukos-Sibneft merger was invalid, as well as new accusations that company management had withdrawn
assets, resulting in increased fears about possible bankruptcy.
Bad news about Yukos and a negative external backdrop indicate the start of a bearish trend on the market in the near
future, traders say.
"The market is waiting. If there is news of a bankruptcy or Central
Bank complaints against any bank that will end up having to sell its
points on the RTS index.
On the RTS, prices were down 2.6% for Unified Energy System, 3.4%
for Norilsk Nickel, 2.2% for Lukoil, 1.9% for Mosenergo, 2.6% for
government wants. This had a negative impact on the market, said Yevgeny Volkov of MDM Bank.
"The market is trying to distance itself from the Yukos situation, but it cannot completely ignore news about
the company. Sales for Yukos increased again and this pulling the entire market down, although there has not been a mass
sell off for any other shares," he said.
securities portfolio (shares or bonds) to settle up with investors, an amount of $100 million will be more than
enough to push the entire market down around 10%," Volkov said.
Rostelecom, 1% for Sberbank, 5.6% for Sibneft, 3.2% for Surgutneftegas and 6.3% for Tatneft (not traded).
Trading volume totaled $9.984 million on the RTS (including $6.537 million in direct deals), and 6.23 billion rubles
on the MICEX.
Gazprom shares on the St. Petersburg were down 0.5% at 56.53 rubles in volume of over 9.138 million shares.
The S&P/RUX composite ruble index climbed 2.11% to 715.37, and the index in dollars was off 2.15% to 146.85.
The MICEX composite slid 1.61% to 528.43. [RU ASIA EUROPE EEU EMRG STX MET ENR ELG TEL E BNK INSI] me
[Interfax] |
RUSSIA IN FACTS
