15 June 2004 09:31
Blue chip decline brings market down Tuesday
On the RTS blue chips were down from 1.3% to 6.7%, Yukos fell 8.5%
to $6.32 - its level at the end of January 2002 and the RTS index fell
MOSCOW. June 15 (Interfax) - The Russian stock market started the new trading week with a drop in price for the
majority of liquid stocks, with Yukos leading the decline. By the end of trading the RTS index was around 540 points,
which is its level in mid-December last year.
4.28% to 542.57 points. Yukos was down about 9% on the MICEX to about 185 rubles. The company's capitalization
fell by more than $1.6 billion over the day to $17.364 billion.
The shares slumped as the market reacted to news that Yukos management had written to the government asking for tax
debts to be restructured by unblocking Yukos assets. Yukos said it would be able to clear about 70% of its tax debt this
year, if assets were unblocked. There was also news that the company is considering a new share issue so that the sales
could be sold for debt.
News from international stock markets and the slide of Russian
ADRs is not helping matters. There is less and less hope of strong
The rest of the market is feeling the pressure of sales, although not as aggressively as Yukos, Antanta Capital
trader Alexander Pankov told Interfax. The bears are in charge and the time has come when only bad news has any impact,
while investors have almost no reaction to good events, he said.
With the start of hearings for former Yukos chief Mikhail Khodorkovsky and major shareholder Platon Lebedev on June
16 and the Tax Ministry's appeal on charging Yukos for back taxes and fines on June 18, the market could see a new
wave of negative information, causing a significant withdrawal of foreign capital.
"Quotes are going down throughout the entire spectrum of liquid shares, but there is not much panic on the
market," said Ivan Dorofeev of Olimpiyskiy bank. "Some shares are so far avoiding a big slump, including
Gazprom, which is in the role of a protected instrument when there is a bearish trend, but this bastion could also
fall," he said.
demand for shares, but selling is not yet aggressive and many traders are being rather cautious with their investment
decisions, traders said.
"Such a slide on the market looks completely logical and natural, because there are no important reasons left to
stop the decline. The market is moving toward 500 points on the RTS with a possible stop at around 530 points,"
Pankov said.
"After a powerful shake-up it will be much easier to rise from low price levels, but this will not happen before
the fall. I think there will be few foreign investors after accumulating Russian shares in their portfolios in the
summer," Dorofeev said.
On the RTS, prices were down 1.3% for UES, 5.6% for Norilsk Nickel, 6.2% for Lukoil, 3.2% for Mosenergo, 2.7% for
Rostelecom, 3.1% for Sberbank, 6.7% for Sibneft, 3.3% for Surgutneftegas, and 3.3% for Tatneft.
Trading volume was at $26.727 million on the RTS (including $8.435 million in direct deals), and 15.2 billion rubles
on the MICEX.
Gazprom shares on the St. Petersburg were down 1.2% at 54.81 rubles in volume of over 20.618 million shares.
The S&P/RUX composite ruble index fell 3.71% to 678.12, and the index in dollars was off 3.66% to 139.23.
The MICEX composite dropped 3.64% to 507.07. [RU ASIA EUROPE EEU EMRG STX MET ENR ELG TEL E BNK INSI] rd me
[Interfax] |
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