10 June 2004 06:51
Yukos plunges 6.8%
MOSCOW. June 10 (Interfax) - Yukos took the rest of the market down with it Thursday, pushing the benchmark RTS index
to around 570 points.
On the RTS, Yukos plunged 6.8% to $7.5 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withdrawn assets, resulting in increased fears about possible bankruptcy. On the MICEX, Yukos lost 5.5% to 219.5
rubles.
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
Other blue chips went down 1.5% to 4.7% on the RTS. The RTS index dropped 3.06% to 571.67 points.
Bad news about Yukos and a negative external backdrop, with international stock markets and oil prices down and weak
demand for Russian ADRs, indicate the start of a bearish trend on the market in the near future, traders say. The market
may again fall to around 550-560 points on the RTS index.
"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
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.
On the RTS, prices went down 2.6% for Unified Energy System, 1.5%
for Norilsk Nickel, 2.7% for Lukoil, 1.9% for Mosenergo, 3.5% for
There are also all sorts of rumors on the market about monetary liquidity loss due to fears of a banking system
crisis. "Banks continue to reduce or even close limits on counter agents, getting read to return money to
depositors if needed. Interbank loan market rates are high, leading to a fall back for share quotes. There is no serious
news, apart from Yukos, so investors are taking some insurance," 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.
"The market's slide on Thursday did not see much trading volume, indicating some volatility in the downward
trend. There was more action from foreign players, but local speculators continued to dominate and create local trend
within the framework of a mid-term sideways channel," Anatoly Kaplin of the Aton brokerage said. "It is still
too early to talk of the market coming out of a stage of consolidation," he added.
Rostelecom, 2.2% for Sberbank, 3.7% for Sibneft, 3.2% for Surgutneftegas and 4.7% for Tatneft (not traded).
Trading volume totaled $18.761 million on the RTS (including $9.152 million in direct deals), and over 14.5 billion
rubles on the MICEX.
Gazprom shares on the St. Petersburg went down 0.4% to 56.6 rubles in volume of over 20.252 million shares.
The S&P/RUX composite ruble index dropped 2.41% to 713.19, and the index in dollars was off 2.45% to 146.40.
The MICEX composite fell 1.27% to 530.24. [RU ASIA EUROPE EEU EMRG STX MET ENR ELG TEL E BNK INSI] me
[Interfax] |
RUSSIA IN FACTS
